ACIT, Jaipur V. SMT. VARSHA SINGH, Jaipur

ITA 733/JPR/2011

• Counselvise Citation: 73323114 RSA 2011
• Duration Of Justice: 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 11-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K MEENA
• Section: 80HHC; 2

Judgement Text

1 ITA 733-11 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH B JAIPUR BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ITA NO. 733/JP/2011 ASSTT. YEAR : 2008-09. THE ACIT, CIRCLE-3, VS. SMT. VARSHA SINGH, JAIPUR. THALTARA, SIRSI ROAD, KHATIPURA, JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI D.K. MEENA RESPONDENT BY : SHRI RAJEEV SOGANI DATE OF HEARING : 10.01.2012 DATE OF PRONOUNCEMENT : 30.01.2012. ORDER DATE OF ORDER : 30/01/2012. PER R.K. GUPTA, J.M. THIS IS AN APPEAL BY DEPARTMENT AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 2008-09. 2. THE DEPARTMENT IS OBJECTING IN ALLOWING DEDUCTIO N UNDER SECTION 10BA WHEN THE ASSESSEE DID NOT FULFILL THE CONDITIONS LAID DOWN U NDER SECTION 10BA(2) OF THE IT ACT. 3. THE LD. D/R FAIRLY STATED THAT THIS ISSUE IS COV ERED BY THE DECISION OF TRIBUNAL IN CASE OF ASSESSEE ITSELF. HOWEVER, HE PLACED RELIAN CE ON THE ORDER OF AO. 4. THE ASSESSEE IS DOING MANUFACTURING AND EXPORT O F INDIAN ARTISTIC HANDICRAFT ITEMS, MAINLY MADE OF WOOD. THE ASSESSEE HAS CLAIM ED EXEMPTION UNDER SECTION 10BA 2 ON THE PROFITS DERIVED. THE CLAIM OF APPELLANT WAS REJECTED BY THE AO ON THE GROUND THAT THERE WAS NO MANUFACTURING CARRIED OUT BY THE APPEL LANT. ALL THE MACHINERY AND PLANT USED BY IT WAS INSTALLED IN YEAR 2000 AND SHE HAD A LREADY CLAIMED DEDUCTION UNDER SECTION 80HHC AND UNDER SECTION 80IB. IT WAS HELD THAT THE CONCERN WAS NOT A NEW CONCERN. THE CUSTOMER, MANAGEMENT, MACHINERY ETC. WERE THE S AME AND, THEREFORE, CONDITIONS LAID DOWN UNDER SECTION 10BA(B) AND (C) WERE NOT SATISFI ED. THE EXPENSES OF JOB CHARGES AND POWER AND FUEL CHARGES ALSO INDICATED THAT THESE HA NDMADE WOODEN ARTICLES DID NOT REQUIRE INPUT OF ARTISTIC VALUE BUT ONLY POLISHING/ PACKING WORK ON MANUFACTURED ARTICLES WAS CARRIED OUT. THE CLAIM OF DEDUCTION WAS, THEREF ORE, REJECTED. 5. DETAILED SUBMISSIONS WERE FILED BEFORE LD. CIT ( A) AND IT WAS SUBMITTED THAT IN CASE OF ASSESSEE ITSELF, THE TRIBUNAL HAS CONFIRMED THE ORDER OF LD. CIT (A) FOR ASSESSMENT YEARS 2005-06 TO 06-07 IN ITA NOS. 663/JP/2008, 926 /JP/2008, 791/JP/2009 AND 349/JP/2010. IT WAS SUBMITTED THAT FOR ASSESSMENT YEAR 2007-08 ALSO THE APPEAL OF THE DEPARTMENT HAS BEEN DISMISSED BY THE TRIBUNAL. AF TER CONSIDERING THE SUBMISSIONS AND PERUSING THE MATERIAL ON RECORD I.E. THE APPELLATE ORDER BY TRIBUNAL, THE LD. CIT (A) FOUND THAT ON IDENTICAL FACTS THE APPEAL OF THE DEPARTMEN T HAS BEEN DISMISSED BY THE TRIBUNAL ACCORDINGLY HE ALLOWED THE APPEAL OF THE ASSESSEE. 6. AFTER CONSIDERING THE ORDERS OF THE AO AND LD. C IT (A) WE FIND NO INFIRMITY IN THE FINDING OF LD. CIT (A) WHO HAS ALLOWED THE APPEAL O F THE ASSESSEE FOLLOWING THE ORDER OF TRIBUNAL FOR ASSESSMENT YEARS 2004-05 TO 07-08. CO PIES OF THE ORDERS ARE PLACED ON RECORD. IN VIEW OF THE CONSISTENCY, WE CONFIRM THE ORDER OF LD. CIT (A) AS TRIBUNAL HAS ALLOWED THE IDENTICAL ISSUE FOR EARLIER YEARS IN FA VOUR OF THE ASSESSEE. 7. IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISMI SSED. 3 8. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 30. 01.2012. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR, D/- COPY FORWARDED TO :- THE ACIT, CIRCLE-3, JAIPUR. SMT. VARSHA SINGH, JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 733/JP/2011) BY ORDER, AR ITAT JAIPUR.