Fifth Generation Technologies P. Ltd., CHENNAI V. ACIT Company Circle 2(1), CHENNAI

ITA 967/CHNY/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 0311 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2002-2003
• Appeal Filed On: 20-03-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R CLEMENT RAMESH KUMAR
• Keywords: Opportunity of being heard
• Section: 143(3); 80HHC

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI . . . , ! ' , # '$ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NO.967/CHNY/2018 % &% /ASSESSMENT YEAR: 2002-03 M/S. FIFTH GENERATION TECHNOLOGY PVT. LTD., TS-140, BLOCK 2&9, 4 TH FLOOR, ELNET SOFTWARE CITY, RAJIV GANDHI STREET, CHENNAI 600 113. VS. ASST. COMMISSIONER OF INCOME TAX, COMPANY CIRCLE-2(1), CHENNAI. [PAN: AAACF 5919Q] ( '( /APPELLANT) ( )*'( /RESPONDENT) '( + , / APPELLANT BY : NONE )*'( + , /RESPONDENT BY : SHRI R. CLEMENT RAMESH KUMAR, ADDL. CIT - + . # /DATE OF HEARING : 01.04.2019 /0& + .# / DATE OF PRONOUNCEMENT : 03.04.2019 / O R D E R PER INTURI RAMA RAO, ACCOUNTANT MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AG AINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) -13, CHENNAI (HEREINAFTER CALLED AS CIT(A)) DATED 01.12.2017 F OR THE ASSESSMENT YEAR (AY) 2002-03. ITA NO.967/CHNY/2018 (AY: 2002-03) :- 2 -: 2. THE BRIEF FACTS OF THE CASE ARE THAT THE APPELLA NT IS A COMPANY INCORPORATED UNDER THE PROVISIONS OF COMPANIES ACT, 1956. IT IS ENGAGED IN THE BUSINESS OF SOFTWARE DEVELOPMENT AND WEB DES IGNING ETC. THE RETURN OF INCOME FOR THE AY 2002-03 WAS FILED ON 31 .10.2002 DISCLOSING TOTAL INCOME OF RS. 7,27,777/-. AGAINST THE SAID RE TURN OF INCOME, THE ASSESSMENT WAS COMPLETED BY THE ASST. CIT, COMPANY CIRCLE-II(1), CHENNAI (HEREINAFTER CALLED AO) VIDE ORDER DATED 07.02.2005 PASSES U/S. 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) AT TOTAL INCOME OF RS. 17,96,840/-. WHILE DOING SO, THE AO MADE SE VERAL DISALLOWANCES AND RESTRICTED THE DEDUCTION U/S. 80HHC OF THE ACT TO THE EXTENT OF RS. 12,01,779/- AS AGAINST THE CLAIM OF RS. 13,93,900/- . IN APPEAL BEFORE LD. CIT(A), IT IS HELD AS UNDER: THE ASSESSING OFFICER HAD RECOMPUTED 8OHHC ALLOWAB LE DEDUCTION FOR RS.12,01,779/- AS AGAINST THE ASSESSEES CLAIM U/S 8OHHC FOR RS.13,93,900/-. THE APPELLANT HAS SUBMITTED WRITTEN EXPLANATION AND EVIDENCES THE SAME WERE FORWARDED TO THE AO FOR HIS EXAMINATION AND THEN TO SUBMIT REMAND REPORT UNDER RULE 46A OF IT RULES 1962. THE AO HAS GIVEN HIS CLEAR FINDINGS IN DETAIL IN TH E REMAND REPORT SUPRA AND HAD HELD THAT THE ASSESSEE IS ELIGIBLE FO R 70% OF THE EXPORT PROFIT FOR RS.12,04,168/-. THE REMAND REPORT SO REC EIVED ON THE ISSUE OF 8OHHC, THE ASSESSEE WAS REQUIRED TO SUBMIT THE R EBUTTAL, THEREFORE, THE OPPORTUNITY OF BEING HEARD WAS GIVEN TO THE ASSESSEE ON 26.09.2007, 09.10.2017, 07.11.2017, 22.11.2017 A ND ON 01.12.2017, HOWEVER, THE APPELLANT HAS NOT AVAILED THESE OPPORTUNITIES, THEREFORE RELYING ON THE REMAND REPO RT OF THE AO I HELD THAT THE APPELLANT IS ELIGIBLE FOR 70% OF THE EXPOR T PROFIT FOR RS. 12,04,168/-. THE GROUND OF APPEAL ON THE ISSUE IS T HEREFORE PARTLY ALLOWED. 3. NOTHING WAS SHOWN TO US AS TO HOW THE FINDINGS O F THE LD. CIT(A) IS ERRONEOUS ON THE FACTS AND LAW THEREFORE, WE CONFIR M THE ORDER OF LD. CIT(A), THE APPEAL FILED BY THE ASSESSEE IS DISMISS ED. ITA NO.967/CHNY/2018 (AY: 2002-03) :- 3 -: 4. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS D ISMISSED. ORDER PRONOUNCED ON THE 03 RD DAY OF APRIL, 2019 IN CHENNAI. SD/- SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER ( ! ' ) (INTURI RAMA RAO) # /ACCOUNTANT MEMBER /CHENNAI, 1 /DATED: 03 RD APRIL, 2019. EDN, SR. P.S + ).23 43&. /COPY TO: 1. '( /APPELLANT 2. )*'( /RESPONDENT 3. - 5. ( )/CIT(A) 4. - 5. /CIT 5. 36 ). /DR 6. 7% 8 /GF