DCIT, Mohali V. M/s Kotla Hydro Power Private Limited, Noida

ITA 755/CHANDI/2015

• Counselvise Citation: 75521514 RSA 2015
• Duration Of Justice: 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Next Hearing Date: 05-11-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 28-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGHDR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS.ANNAPURNA MEHROTRA, ACCOUNTANT MEMBER ITA NO. 755/CHD/2015 ASSESSMENT YEAR: 2010-11 THE DCIT, VS M/S KOTLA HYDRO POWER P.LTD., CIRCLE 6(1), VILL AGE SALAR, MOHALI. TEHSIL-MALERKOTLA (PB.) (NOW B-37, 3 RD FLOOR, SECTOR-1, NOIDA. PAN: AABCK9253B (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANJIT SINGH,DR RESPONDENT BY : NONE DATE OF HEARING : 05.11.2015 DATE OF PRONOUNCEMENT : 06.11.2015 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY REVENUE IS DIRECTED AGAINST THE ORDE R OF LD. CIT(APPEALS)-II CHANDIGARH DATED 01.06.2015 FOR ASSESSMENT YEAR 2010-11, CHALLENGING THE ORDER OF L D. CIT(APPEALS) IN ALLOWING DEDUCTION UNDER SECTION 80 IA IN RESPECT OF INSURANCE RECEIPTS AMOUNTING TO RS. 17,88,859/-. 2. THE ASSESSEE WITH REGARD TO DEDUCTION UNDER SECT ION 80IA OF INCOME TAX ACT ON INSURANCE RECEIPTS SUBMIT TED THAT ASSESSEE SUFFERED LOSS DUE TO MACHINERY BREAK DOWN AND HAD RECEIVED CERTAIN COMPENSATIONS WHICH INCLUD ED 2 REFUND OF INSURANCE PREMIUM AND OTHER AMOUNT. THEREFORE, IT WAS INCOME GENERATED FROM PROFIT DERI VED FROM THE ELIGIBLE BUSINESS. SO THE ASSESSEE IS ENTI TLED FOR DEDUCTION UNDER SECTION 80IA. THE LD. CIT(APPEALS) NOTED THAT IDENTICAL ISSUE WAS INVOLVED IN ASSESSME NT YEAR 2009-10 AND VIDE ORDER DATED 31.01.2013, HE HE LD THAT DUE TO SUCH INSURANCE RECEIPTS, EXPENDITURE ON INSURANCE MERELY GETS REDUCED AND SO, ASSESSEE WAS ELIGIBLE FOR DEDUCTION UNDER SECTION 80IA ON THESE RECEIPTS. THE ITAT CHANDIGARH BENCH VIDE ORDER DATE D 15.04.2015 IN ITA 389 AND 390/CHD/2013 IN THE CASE OF M/S KOTLA HYDRO POWER PVT. LTD. AND THE ASSESSEE RESPECTIVELY HAS DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE HOLDING THAT ASSESSEE WOULD BE ENTITLED FO R DEDUCTION UNDER SECTION 80IA OF THE ACT. 3. THE LD. CIT(APPEALS) FOLLOWING THE ORDER OF TRIB UNAL, DIRECTED THE ASSESSING OFFICER TO VERIFY THE NATURE OF INSURANCE RECEIPTS AND IF THE SAME ARE OF REVENUE N ATURE, THEN DEDUCTION UNDER SECTION 80IA IS TO BE ALLOWED. 4. AFTER HEARING LD. DR, WE DO NOT FIND ANY MERIT I N THIS GROUND OF APPEAL OF THE REVENUE. THE LD. CIT(APPEALS) HAS FOLLOWED HIS OWN ORDER FOR PRECEDI NG ASSESSMENT YEAR 2009-10 AS WELL AS THE ORDER OF THE TRIBUNAL IN THE CASE OF THE ASSESSEE AND OTHERS. T HE LD. CIT(APPEALS), THEREFORE, CORRECTLY DIRECTED THE ASS ESSING OFFICER TO VERIFY THE NATURE OF INSURANCE RECEIPTS AND IF THE SAME ARE OF REVENUE NATURE, ASSESSEE WOULD BE 3 ENTITLED FOR DEDUCTION UNDER SECTION 80IA OF THE AC T. NO INFIRMITY HAVE BEEN POINTED OUT IN THE ORDER OF THE LD. CIT(APPEALS), THEREFORE, DEPARTMENTAL APPEAL HAS NO MERIT AND IS ACCORDINGLY, DISMISSED. 5. IN THE RESULT, DEPARTMENTAL APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA MEHROTRA) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 6 TH NOV., 2015. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT/CHD