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

ITA 77/NAG/2010

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 9635 (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: Not Allotted
• Assessment Year: 2004-2005
• Appeal Filed On: 12-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR MILIND BHUSARI
• Section: 80IB

Judgement Text

ITA NO. 7 7 / 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 7 / NAG / 20 10 ASSESSMENT YEAR : 200 3 - 0 4 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 2004 - 05. THE ASSESSEE HAS SUBMITTED CONCISE REVISED GROUNDS OF APPEAL COPY OF WHICH IS PROVIDED TO CIT (DR). THE CONCISE RE VISED GROUNDS OF APPEAL ARE AS UNDER: 1) THE LEARNED A.O. ERRED IN NOT REDUCING INTEREST PAID AT RS.1,83,077/ - OUT OF INTEREST RECEIVED AT RS.8,79,586/ - FOR COMPUTING THE DEDUCTION U/S 80IB. 2) THE LEARNED A.O. ERRED IN EXCLUDING RS.4,85,726/ - AS TRADING PROFI T FOR COMPUTING DEDUCTION U/S 80IB OF I.T. ACT 1961. 3) THE LEARNED A.O. ERRED IN EXCLUDING OF SALES TAX REFUND OF RS.88,615/ - FOR COMPUTING THE DEDUCTION U/S 80IB. 4) THE LEARNED A.O. ERRED IN NOT ALLOWING THE EXPENDITURE OF RS.1,78,917/ - OF THAPODA UNIT. 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 IT A NO.7 7 /NAG/2010 PLASTI SURGE INDUSTRIES PVT. LTD AMARAVATI 2 DISPUTE IS SIMILAR TO THAT IN ASSTT. YEAR 2006 - 07 IN ITA NO.79/NAG/2010 AT GROUND NO.1. WE HAV E 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 INTEREST PAID AT RS.1,83,077/ - OUT OF INTEREST RECEIVED AT RS.8,79,586/ - FOR EXCLUDING TH E SAME FOR GRANT OF DEDUCTION U/S 80IB OF I.T. ACT 1961. GROUND OF APPEAL IS ALLOWED. 3. IN GROUND NO.2 ASSESSEE HAS CHALLENGED THE TRADING PROFIT OF RS.4,85,726/ - 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.4,85,726/ - 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 SALES TAX REFUND OF RS.88,615/ - FOR THE PURPOSE OF COMPUTATION O F DEDUCTION U/S 80IB OF I.T. ACT 1961. WE HAVE CONSIDERED THE SUBMISSIONS MADE BY ASSESSEE S REPRESENTATIVE AND PERUSED THE EVIDENCE ON RECORD. THE ITAT, VISHAKAPATNAM BENCH IN THE CASE OF ACIT VS. JOCIL LTD., GUNTUR DOKIPARRU IN ITA NO.218/VIZAG./2007 AT PARA 11 OF THE ORDER HAS CONCLUDED THAT SALES TAX REFUND RECEIVED FROM DEPARTMENT AND ASSESSED U/S 41(1) OF I.T. ACT 1961 IS ELIGIBLE FOR DEDUCTION U/S 80IB OF I.T. ACT 1961. RESPECTFULLY THE SAME WE DIRECT NOT TO EXCLUDE THE SALES TAX REFUND OF RS.88, 615/ - FOR GRANT OF DEDUCTION U/S 80IB OF I.T. ACT 1961. GROUND OF APPEAL IS ALLOWED. 5. IN GROUND NO.4 ASSESSEE HAS CHALLENGED DISALLOWANCE OF EXPENDITURE OF RS.1,78,917/ - OF THAPODA UNIT. THE ISSUE IN DISPUTE IS SIMILAR TO THAT IN ASSTT. YEAR 2006 - 07 IN ITA NO.79/NAG/2010 AT GROUND NO.5. 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 DELETE THE ADDITION ON ACCOUNT IT A NO.7 7 /NAG/2010 PLASTI SURGE INDUSTRIES PVT. LTD AMARAVATI 3 OF DISALLOWANCE OF EXPEN DITURE OF RS.1,78,917/ - OF THAPODA UNIT. 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 DA TED 19 TH OCTOBER , 20 1 2 COPY TO 1 PLASTI 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