Kannappan Iron and Steel Company P Ltd., CHENNAI V. DCIT, Coimbatore

ITA 93/CHNY/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 7987 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2016
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 04-01-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 13-01-2015
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Assessee Lawyers: R VIJAYARAGHAVAN
• Section: 143(3); 115JB

Judgement Text

, , IN THE INCOME - TAX APPELLATE TRIBUNAL C BENCH, CHENNAI , . , BEFORE SHRI CHANDRA POOJARI , ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ./ I.T.A.NO. 93/MDS/2015 / ASSESSMENT YEAR :20 1 0 - 11 M/S. KANNAPPAN IRON & STEEL COMPANY PVT. LTD., NO. 9/11, KALIDAS ROAD, RAM NAGAR, COIMBATORE 641 009. [PAN: A A BCK2974P ] VS. THE DEPUTY COMMISSIONER OF INCOME TAX , COMPANY CIRCLE I ( 2 ) , C OIMBATORE . ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI R. VIJAYARAGHAVAN , ADVOCATE / RESPONDENT BY : SHRI A. V. SREEKANTH , J CIT / DAT E OF HEARING : 0 4 . 0 1 .201 6 / DATE OF P RONOUNCEMENT : 17 . 0 2 .201 6 / O R D E R PER DUVVURU RL REDDY , JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (AP PEALS) I , COIMBATORE , DATED 03 . 11. 20 14 RELEVANT TO THE ASSESSMENT YEAR 2010 - 11. THE ONLY EFFECTIVE GROUND RAISED IN THE APPEAL OF THE ASSESSEE IS WITH REGARD TO THE DISALLOWANCE OF .99,49,187/ - CLAIMED UNDER SECTION 80IA IV(A) THE INCOME TAX ACT, 1961 [ A CT IN SHORT] BEING ADDITIONAL GROUND RAISED BY THE ASSESSEE BEFORE THE LD. CIT(A) AND NOT RAISED BEFORE THE ASSESSING OFFICER. I.T.A. NO . 93 /M/ 15 2 2. THE APPEAL OF THE ASSESSEE IS FOUND TO HAVE BEEN FILED LATE BY ONE DAY. THE ASSESSEE HAS FILED AN AFFIDAVIT FOR CONDONATI ON OF DELAY. BY PLEADING THE REASONS STATED IN THE AFFIDAVIT, THE LD. COUNSEL FOR THE ASSESSEE HAS REQUESTED FOR CONDONING THE DELAY AND TO ADMIT THE APPEAL FOR HEARING. THE LD. DR HAS NOT SERIOUSLY OBJECT TO THE SUBMISSIONS OF THE LD. COUNSEL FOR THE ASSE SSEE . WE HAVE CONSIDERED THE AFFIDAVIT FILED BY THE ASSESSEE AND FIND THAT THERE IS SUFFICIENT CAUSE FOR CONDONING DELAY. ACCORDINGLY, WE CONDONE THE DELAY OF ONE DAY IN FILING THE APPEAL AND ADMIT THE APPEAL FOR HEARING. 3. THE ASSESSEE IS ENGAGED IN TH E BUSINESS OF MANUFACTURE OF IRON AND STEEL AND FILED ITS RETURN ADMITTING TOTAL INCOME OF .98,94,534/ - UNDER NORMAL COMPUTATION AND .2,54,44,526/ - UNDER SECTION 115JB OF THE ACT. THE RETURN FILED BY THE ASSESSEE WAS PROCESSED UNDER SECTION 143(1) OF THE ACT AND SUBSEQUENTLY, THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY AND NOTICE UNDER SECTION 143(2) WAS SERVED ON THE ASSESSEE. IN RESPONSE TO THE NOTICE UNDER SECTION 143(2) OF THE ACT, THE AR OF THE ASSESSEE FILED ALL RELEVANT DOCUMENTS AS REQUIRED BY THE ASSESSING OFFICER. AFTER CONSIDERING THE MATERIALS AVAILABLE ON RECORD AND SUBMISSI ONS OF THE ASSESSEE, THE ASSESSING OFFICER COMPLETED THE ASSESSMENT UNDER SECTION 143(3) OF THE ACT BY DETERMINING TOTAL INCOME OF THE ASSESSEE AT .1,42,22,259/ - BY MAKING VARIOUS ADDITIONS. I.T.A. NO . 93 /M/ 15 3 4. THE ASSESSEE CARRIED THE MATTER IN APPEAL WITH A PLEA OF RAISING ADDITIONAL GROUND TO ADMIT THE CLAIM OF DEDUCTION UNDER SECTION 80IA IV(A) OF THE ACT. SINCE THE ISSUE WAS NOT RAISED B EFORE THE ASSESSING OFFICER BY FILING 10CCB REPORT , THE LD. CIT(A) DISMISSED THE GROUND RAISED IN THE APPEAL FILED BY THE ASSESSEE. 5. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 6. WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. BY FILING 10CCB REPORT FOR THE FIRST TIME, THE AR OF THE ASSESSEE HAS RAISED AN ADDITIONAL GROUND BEFORE THE LD. CIT(A) WITH REGARD TO CLAIM OF DEDUCTION UNDER SECTION 80IA OF THE ACT. IT WAS THE SUBMISSION OF THE LD. COUNS EL FOR THE ASSESSEE THAT W ITHOUT OBTAINING REMAND REPORT FROM THE ASSESSING OFFICER AND DECIDING THE ISSUE RAISED BEFORE THE LD. CIT(A) , THE LD. CIT(A) HAS SIMPLY DISMISSED THE GROUND RAISED BY THE ASSESSEE ONLY ON THE GROUND THAT THE SAME WAS NOT RAISED B EFORE THE ASSESSING OFFICER BY FILING 10CCB REPORT. IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES , WE SET ASIDE THE ORDER OF THE LD. CIT(A) ON THIS ISSUE AND REMIT THE MATTER BACK TO THE ASSESSING OFFICER WITH A DIRECTION TO DECIDE THE CLAIM OF DEDUCTION UN DER SECTION 80IA OF THE ACT IN ACCORDANCE WITH LAW AFTER ALLOWING SUFFICIENT OPPORTUNITY OF HEARING TO THE ASSESSEE. NO OTHER GROUND I.T.A. NO . 93 /M/ 15 4 HAS BEEN RAISED IN THE APPEAL OF THE ASSESSEE. THUS, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 7 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED ON THE 17 TH FEBRUARY , 201 6 AT CHENNAI. SD/ - SD/ - ( CHANDRA POOJARI ) ACCOUNTANT MEMBER ( DUVVURU RL REDDY ) JUDICIAL MEMBER CHENNAI, DATED, THE 17 . 0 2 .201 6 VM/ - / COPY TO: 1. / APPELLANT , 2. / RESPONDENT , 3. ( ) / CIT(A) , 4. / CIT , 5. / DR & 6. / GF.