M/s GVK Industries Limited, Hyderabad V. DCIT,Central Circle-2(2), Hyderabad

MA 177/HYD/2013

• Counselvise Citation: [2013] 124 COUNSELVISE.COM (IT) 0835 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 22 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 30-08-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 08-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUNIL BABU
• Assessee Lawyers: V SHIV KUMAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN , JUDICIAL MEMBER MA NO. 177/HYD/2013 IN ITA NO. 1580/HYD/2008 ASSESSMENT YEAR 2006-07 M/S. GVK INDUSTRIES LTD. SECUNDERABAD PAN: AAACG7499J VS. THE DCIT CIRCLE 2(2) HYDERABAD APPELLANT RESPONDENT APPELLANT BY: SRI V. SHIV KUMAR RESPONDENT BY: SRI SUNIL BABU DATE OF HEARING: 30 .0 8 .2013 DATE OF PRONOUNCEMENT: 30.08.2013 O R D E R PER CHANDRA POOJARI, AM: BY THE ABOVE MISCELLANEOUS APPLICATION (MA), THE A SSESSEE SEEKS RECTIFICATION IN THE ORDER OF THE TRIBUNAL IN ITA NO. 1580/HYD/2008 DATED 30.3.2012. 2. THE LEARNED AR SUBMITTED THAT THE DEPARTMENT WAS IN APPEAL BEFORE THIS TRIBUNAL FOR A.YS. 2002-03 AND 2 006-07. THE APPEALS FILED BY THE ASSESSEE WERE NUMBERS AS ITA N O. 1659/HYD/2008 (A.Y. 2002-03) AND ITA NO. 1660/HYD/2 008 (A.Y. 2006-07). APPEALS FILED BY THE DEPARTMENT WE RE NUMBERED AS ITA NO. 1579/HYD/2008 (A.Y. 2002-03) AND ITA NO. 1580/ HYD/2008 (A.Y. 2006-07). ONE OF THE COMMON GROUND IN THESE APPEALS IS WITH REGARD TO NETTING OF EXCESS INSURAN CE PREMIUM REFUNDED TO THE ASSESSEE BY THE UNITED INDIA INSURA NCE CO. LTD. AGAINST THE EXPENDITURE INCURRED BY THE ASSESSEE ON THE PAYMENT OF INSURANCE PREMIUM TO THE SAID INSURANCE COMPANY. MA NO. 177/HYD/2013 M/S. GVK INDUSTRIES LTD. =================== 2 3. THE AR SUBMITTED THAT IN ITS ORDER IN ITA NO. 1579/HYD/2008 (FOR A.Y. 2002-03) THE TRIBUNAL DISMI SSED THE DEPARTMENT'S APPEAL ON THE AFORESAID ISSUE. THE RE LEVANT PORTION OF THE ORDER (CONTAINED IN PARAGRAPH NO. 21 OF ITAT'S ORDER) IS EXTRACTED HEREUNDER: '21. GROUND NO. 4 OF THE REVENUE RELATES NETTING O F THE EXCESS INSURANCE PREMIUM RECEIVED AGAINST THE INSURANCE PREMIUM AMOUNT PAID DURING THE YEAR, FOR TAKING INTO ACCOUNT ONLY THE DIFFERENTIAL AMOUN T FOR EXCLUSION FROM THE INCOME ELIGIBLE FOR RELIEF UNDER S. 80IA OF THE ACT. WE FIND THAT THE CIT(A) H AS ACCEPTED THE PLEA OF THE ASSESSEE FOR THE BENEFIT O F NETTING RELYING ON THE DECISION OF THE SPECIAL BENC H OF THE TRIBUNAL IN THE CASE OF LALSONS ENTERPRISES (89 ITD 25). IN THE ABSENCE OF ANY DECISION TO THE CONTRARY BROUGHT TO OUR NOTICE, WE FIND NO INFIRMIT Y IN THE ORDER OF THE CIT(A) IN THIS BEHALF. WE ACCORDINGLY UPHOLD THE SAME AND REJECT THE GROUND OF REVENUE IN THIS BEHALF.' 4. THE AR SUBMITTED THAT THE ORDER IN ITA NO. 1580/HYD / 2008 (FOR A.Y. 2006-07), THE TRIBUNAL HELD AS UNDER (VIDE PARAGRAPH 30 OF ITAT'S ORDER): '30. GROUND NO. 4 RELATES TO THE NETTING OF THE EXCESS PREMIUM RECEIVED AGAINST THE INSURANCE PREMIUM AMOUNT PAID DURING THE YEAR, FOR TAKING INTO ACCOUNT ONLY THE DIFFERENTIAL AMOUNT FOR EXCLUSION FROM THE INCOME ELIGIBLE FOR RELIEF U/S. 80IA OF THE ACT. THIS GROUND AGAIN IS SIMILAR TO T HE ONE RAISED BY THE REVENUE ON THIS VERY ISSUE FOR TH E ASST. YEAR 2002-03. HENCE FOR THE REASONS DISCUSSED WHILE DEALING WITH THE CORRESPONDING GROUND OF THE REVENUE IN ITS APPEAL FOR THE ASSESSMENT YEAR 2002-03, IN PARA HEREINABOVE, THIS GROUND OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES.' 5. THE AR SUBMITTED THAT THE TRIBUNAL HAVING HELD THAT THE GROUND OF APPEAL FOR A.Y. 2006-07 IS SIMILAR TO THE GROUND OF APPEAL FOR A.Y. 2002-03, OUGHT TO HAVE STATED THAT THE GROUND OF REVENUE IS REJECTED INSTEAD OF STATING 'THIS GROUND OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES.' THE AR SUBMI TTED THAT THE MA NO. 177/HYD/2013 M/S. GVK INDUSTRIES LTD. =================== 3 CONCLUSION IN PARAGRAPH 30 STATING THAT 'THIS GROUN D OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES.' CONST ITUTES A MISTAKE APPARENT FROM RECORD. THE AR SUBMITTED THA T THE TRIBUNAL MAY PASS SUCH ORDERS AS ARE NECESSARY TO R ECTIFY THE ABOVE MENTIONED MISTAKE THAT CREPT INTO ITS ORDER D ATED 30.3.2012 PASSED IN ITA NO. 1580/HYD/2008. 6. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATE RIAL ON RECORD. THE TRIBUNAL HELD THAT THE GROUND RAISE D BY THE REVENUE IN A.Y. 2006-07 IS SIMILAR TO THE GROUND RA ISED IN A.Y. 2002-03. BEING SO WHATEVER HELD FOR THE A.Y. 2002- 03 IN RESPECT OF GROUND NO. 4 IS APPLICABLE TO GROUND NO. 4 IN A.Y. 2006-07 IN ITA NO. 1580/HYD/2008 AND ACCORDINGLY IT IS TO BE HELD THAT THE GROUND RAISED BY THE REVENUE IS REJEC TED. AFTER THIS RECTIFICATION, THE RESULT IN ITA NO. 1580/HYD/ 2008 IS TO BE READ AS FOLLOWS: 'THE GROUND NO. 4 OF THE REVENUE IS REJECTED. THUS , THE APPEAL OF THE REVENUE IN ITA NO. 1580/HYD/2008 IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. THERE IS NO CHANGE IN THE END RESULT OF THE REVENUE APPEAL IN ITA NO. 1580/HYD/2008.' 7. IN THE RESULT, THE MA FILED BY THE ASSESSEE IS ALLO WED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH AUGUST, 2013. SD/ - (ASHA VIJAYARAGHAVAN) JUDICIAL MEMBER SD/ - (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED 30 TH AUGUST, 2013 TPRAO MA NO. 177/HYD/2013 M/S. GVK INDUSTRIES LTD. =================== 4 COPY FORWARDED TO: 1. M/S. GVK INDUSTRIES LTD., 156 - 159 PAIGAH HOUSE, SP ROAD, SECUNDERABAD. 2 . THE DCIT, CIRCLE 2(2), HYDERABAD. 3 . THE CIT(A) - II I, HYDERABAD. 4 . THE CIT - II , HYDERABAD. 5 . THE DR ' B ' BENCH, ITAT, HYDERABAD