ACIT, Hyderabad V. M/s Essvy Cold Storage Pvt Ltd, Secunderabad

ITA 858/HYD/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 66278 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 26-06-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 08-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIVEDITA BISWAS
• Assessee Lawyers: A V RAGHURAM
• Section: 80IB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SRI SAKTIJIT DEY, JUDICIAL MEMBER I.T.A. NO. 858/HYD/2010 ASSESSMENT YEAR 2005-06 THE ASST. CIT CIRCLE-2(2) HYDERABAD VS. M/S. ESSVY COLD STORAGE PVT. LTD., SECUNDERABAD PAN: AAACE8020H APPELLANT RESPONDENT APPELLANT BY: SMT. NIVEDITA BISWAS RESPONDENT BY: SRI A.V. RAGHURAM DATE OF HEARING: 23.08.2012 DATE OF PRONOUNCEMENT: 07.09.2012 O R D E R PER CHANDRA POOJARI, AM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-III, HYDERABAD DATED 17.3.2010 FOR AS SESSMENT YEAR 2005-06. 2. THE REVENUE RAISED THE GROUND WITH REGARD TO GRANTI NG DEDUCTION U/S. 80IB(11) OF THE ACT IN RESPECT OF CO LD STORAGE PLANT ESTABLISHED BY THE ASSESSEE IN BYADAGI VILLAG E KARNATAKA. 3. AFTER HEARING BOTH THE PARTIES, WE ARE OF THE OPINI ON THAT SIMILAR ISSUE CAME BEFORE THIS TRIBUNAL IN THE CASE OF M/S. SARANG HITECH COLD STORAGE PVT. LTD. IN ITA NO. 153 3 TO 1535/HYD/2011 VIDE ORDER DATED 11 TH APRIL 2012. THE TRIBUNAL HELD AS FOLLOWS : PARA 6 ' 6. WE FIND THAT FOR THE ASSESSMENT YEAR 2005-06, I N THE APPEAL FILED BY THE REVENUE, WE HAVE DECIDED AS FOL LOWS: I.T.A. NO. 858/HYD/2010 M/S. ESSVY COLD STORAGE PVT. LTD. ========================== 2 WE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE ISSUE INVOLVED IN THIS APP EAL, AS TO WHETHER THE ASSESSEE, MAINTAINING COLD CHAIN STORAG E FACILITY, IS ELIGIBLE FOR DEDUCTION U/ S 80IB OF THE ACT, IS COV ERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE AGRA BENCH OF THE TRIBUNAL IN THE CASE OF PALIWAL ICE & COLD STORE VS . ITO (ITA NO. 231/AGR/2007 DATED 24.10.2008), A COPY OF WHICH HAS ALSO BEEN FILED BEFORE US. IT HAS ALSO BEEN BROUGHT TO O UR NOTICE THAT THE SAID DECISION OF THE AGRA BENCH OF THE TRIBUNAL HAS ALSO BEEN AFFIRMED BY THE HON'BLE ALLAHABAD HIGH COURT, VIDE ITS ORDER DATED 3.11.2011 IN INCOME TAX APPEAL NO. 288 OF 2009. IN VIEW OF THE MATTER AND IN THE ABSENCE OF ANY DEC ISION TO THE CONTRARY BROUGHT TO OUR NOTICE, WE FIND NO INFIRMIT Y IN THE ORDER OF THE CIT(A) . WE ACCORDINGLY UPHOLD THE SAME REJE CTING THE GROUNDS OF THE REVENUE IN THIS APPEAL'. 4. FURTHER THE AGRA BENCH OF THIS TRIBUNAL IN THE CASE OF ITO VS. AMBICA SHEETGRAHA PVT. LTD. 119 ITD 235 HELD TH AT COLD CHAIN FACILITY IS WITHIN THE MEANING OF SECTION 80 IB(14)(A) MEANS A CHAIN OF FACILITIES FOR STORAGE OR A CHAIN OF FACILITIES FOR TRANSPORTATION AND IT IS NOT NECESSARY TO CLAIM DE DUCTION U/S. 80IB(11) THAT ASSESSEE SHOULD HAVE BOTH SYSTEM OF S TORAGE AND TRANSPORTATION TO BECOME A PART OF CHAIN FACILITY . THE ASSESSEE OPERATING COLD STORAGE PLANT FOR HANDLING VARIOUS AGRICULTURAL PRODUCE AND SUCH STORAGE FACILITY CONS ISTING OF SEQUENCE OF OPERATIONS, IS OPERATING COLD CHAIN FA CILITY WITHIN THE MEANING OF SECTION 80IB(11)(A) OF THE ACT. HEN CE IS ENTITLED FOR DEDUCTION U/S. 80IB(11) OF THE ACT. 5. BEFORE US THE LEARNED DR DREW OUR ATTENTION TO THE ORDER OF VIZAG BENCH IN THE CASE OF KANYAKA PARAMESWARI C OLD STORAGE PVT. LTD., FOR THE PROPOSITION THAT THE ASSESSEE WA S ONLY OPERATING COLD STORAGE AND NOT COLD CHAIN FACILITY AND AS SUCH THE ASSESSEE IS NOT ENTITLED FOR DEDUCTION U/S. 80I B OF THE ACT. IN OUR OPINION, THE DECISION OF CO-ORDINATE BENCH O F HYDERABAD IS FAVOURABLE TO THE ASSESSEE. THE CO-ORDINATE BEN CH DECISION IS I.T.A. NO. 858/HYD/2010 M/S. ESSVY COLD STORAGE PVT. LTD. ========================== 3 BINDING ON US. ACCORDINGLY, WE ARE INCLINED TO FOL LOW THE SAME INSTEAD OF VIZAG BENCH. . 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 7 TH SEPTEMBER, 2012. SD/- (SAKTIJIT DEY) JUDICIAL MEMBER SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED 7 TH SEPTEMBER, 2012 TPRAO COPY FORWARDED TO: 1. THE ASST. CIT, CIRCLE-2(2), 8 TH FLOOR, IT TOWERS, AC GUARDS, HYDERABAD 2. M/S. ESSVY COLD STORAGE PVT. LTD., 2 ND FLOOR, TIRUMALA COMPLEX, 199 SIKH VILLAGE, SECUNDERABAD. 3. THE CIT(A)-III, HYDERABAD. 4. THE CIT-II, HYDERABAD 5. THE DR A BENCH, ITAT, HYDERABAD