PLASTI SURGE INDUSTRIES PVT.LTD., Nagpur V. ADDITIONAL COMMISSIONER OF INCOME TAX, Amaravati

ITA 75/NAG/2010

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 9632 (ITAT-NAGPUR)
• Duration Of Justice: 2 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-10-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2002-2003
• Appeal Filed On: 12-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR MILIND BHUSARI
• Section: 143(3); 80IB; 148

Judgement Text

ITA NO. 75/ NAG/2010 PLASTI SURGE INDUSTRIES PVT. LTD AMARAVATI IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH , NAGPUR BEFORE: SHRI P.K. BANSAL , ACCOUNTANT MEMBER AND SHRI D.T. GARASIA , JUDICIAL MEMBER ITA NO. 7 5 / NAG / 20 10 ASSESSMENT YEAR : 200 2 - 0 3 PLASTI SURGE INDUSTRIES PVT. LTD. AMARAV ATI VS. ACIT, AMARAVATI RANGE AMARAVATI (APPELLANT) (RESPONDENT) PAN NO.AAACP 9678A APPELLANT BY: SHRI K.P. DEWANI, ADVOCATE RESPONDENT BY: DR. MILIND BHUSARI, CIT(DR) DATE OF HEARING: 11.10.12 DATE OF PRONOUNCEMENT: 19.10.12 ORDER PER P.K. BANSAL, A CCOUNTANT MEMBER: - THIS IS AN APPEAL FILED BY ASSESSEE AGAINST THE ORDER OF CIT(A) - II, NAGPUR DATED 25/2/2010 FOR ASSTT. YEAR 2002 - 03. THE ASSESSEE HAS SUBMITTED CONCISE REVISED GROUNDS OF APPEAL COPY OF WHICH IS PROVIDED TO CIT (DR). THE CONCISE REVI SED GROUNDS OF APPEAL ARE AS UNDER: 1) THE LEARNED A.O. ERRED IN NOT REDUCING INTEREST PAID AT RS.55,033/ - OUT OF INTEREST RECEIVED AT RS.3,84,260/ - FOR COMPUTING THE DEDUCTION U/S 80IB. 2) THE LEARNED A.O. ERRED IN EXCLUDING RS.1,43,431/ - AS TRA DING PROFIT FOR COMPUTING DEDUCTION U/S 80IB OF I.T. ACT 1961. 3) THE LEARNED A.O. ERRED IN LEVYING THE INTEREST U/S 234D OF THE INCOME TAX ACT, 1961. 2. IN GROUND NO.1 ASSESSEE HAS CHALLENGED THE EXCLUSION OF GROSS INTEREST FOR THE PURPOSE OF COMPUTATION OF DEDUCTION U/S 80IB OF I.T. ACT 1961. THE ISSUE IN DISPUTE IS SIMILAR TO THAT IN ASSTT. YEAR 2006 - 07 IN ITA NO.79/NAG/2010 AT GROUND NO.1. WE HAVE DECIDED THE APPEAL OF ASSESSEE FOR ASSTT. YEAR 2006 - 07 AND FOLLOWING THE DECISION IN APPEAL IN ITA NO.7 9/NAG/2010 FOR ASSTT. YEAR 2006 - 07 WE DIRECT TO REDUCE THE INTEREST PAID AT RS.55,033/ - FROM INTEREST RECEIVED AT ITA NO.75/NAG/2010 PLASTI SURGE INDUSTR IES PVT. LTD AMARAVATI 2 RS.3,84,260/ - FOR EXCLUDING THE SAME FOR GRANT OF DEDUCTION U/S 80IB OF I.T. ACT 1961. GROUND OF APPEAL IS ALLOWED. 3. IN GROUND NO.2 ASS ESSEE HAS CHALLENGED THE TRADING PROFIT OF RS.1,43,431/ - FOR THE PURPOSE OF COMPUTATION OF DEDUCTION U/S 80IB OF I.T. ACT 1961. THE ISSUE IN DISPUTE IS SIMILAR TO THAT IN ASSTT. YEAR 2006 - 07 IN ITA NO.79/NAG/2010 AT GROUND NO.3 & 4. WE HAVE DECIDED THE APPEAL OF ASSESSEE FOR ASSTT. YEAR 2006 - 07 AND FOLLOWING THE DECISION IN APPEAL IN ITA NO.79/NAG/2010 FOR ASSTT. YEAR 2006 - 07 WE DIRECT TO REDUCE THE TRADING PROFIT OF RS.1,43,431/ - FOR EXCLUDING THE SAME FOR GRANT OF DEDUCTION U/S 80IB OF I.T. ACT 1961. GROUND OF APPEAL IS ALLOWED. 4. IN GROUND NO.3 ASSESSEE HAS CHALLENGED LEVY OF INTEREST U/S 234D OF THE INCOME TAX ACT, 1961. IT IS SUBMITTED THAT IN THE CASE OF ASSESSEE ORIGINAL ASSESSMENT WAS FRAMED U/S 143(1) ON 24/2/2003 AND NO NOTICE U/S 143(2) OF THE I.T. ACT 1961 WAS ISSUED TO ASSESSEE. IN THE CASE OF ASSESSEE NOTICE U/S 148 WAS ISSUED AND REASSESSMENT U/S 143(3) R.W.S. 147 OF I.T. ACT 1961 WAS FRAMED. INTEREST U/S 234D IS TO BE LEVIED WERE ANY REFUND IS GRANTED TO ASSESSEE UNDER SUB - SECTION (1) OF SECTION 143 AND THE AMOUNT REFUNDED TO ASSESSEE U/S 143(1) EXCEEDS THE AMOUNT REFUNDABLE ON REGULAR ASSESSMENT U/S 143(3) OF I.T. ACT 1961. IN THE CASE OF ASSESSEE ASSESSMENT FRAMED IS REASSESSMENT U/S 143(3) R.W.S. 147 OF THE INCOME TAX ACT 1961 AND THUS NO INTEREST U/S 234D IS CHARGEABLE. CONTENTIONS OF ASSESSEE IS FOUND TO BE CORRECT AND WE DIRECT TO DELETE THE INTEREST LEVIED U/S 234D AS IN THIS CASE INTEREST IS SOUGHT TO BE LEVIED IN REASSESSMENT FRAMED AND NOT IN ORIGINAL ASSESSMENT. GROUND OF APPEAL IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 19.10. 20 1 2 SD/ - SD/ - ( D.T. GARASIA ) (P.K. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER VG/SPS NAGPUR DATED 19 TH OCTOBER , 20 1 2 ITA NO.75/NAG/2010 PLASTI SURGE INDUSTR IES PVT. LTD AMARAVATI 3 COPY TO 1 PLA STI SURGE INDUSTRIES PVT. LTD., SIDHARTHA BHAVAN, MORSHI ROAD, AMARAVATI, C/O M/S. DEWANI BROS., ADVOCATES, 1 - AJANTA CHHINDWARA ROAD, NAGPUR - 440 013 2 ACIT, AMARAVATI RANGE, AMARAVATI 3 THE CIT - III , NAGPUR 4 THE CIT (A) , NAGPUR 5 THE DR, ITAT, NAGPUR 6 GUARD FILE. BY ORDER SR. PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL NAGPUR