DCIT, Central Circle-2(2), Hyd, Hyderabad V. Gayatri Agro Industrial Power Ltd., Suryapet, Hyderabad

MA 59/HYD/2016

• Counselvise Citation: [2016] 124 COUNSELVISE.COM (IT) 5115 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 09-12-2016
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2002-2003
• Appeal Filed On: 09-09-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A SITARAMA RAO
• Assessee Lawyers: B SAI PRASAD
• Keywords: Audit objection; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SMT P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER M.A. NOS. 59 & 60/HYD/2016 (IN ITA NOS. 104 & 105/HYD/2015 ASSESSMENT YEARS: 2002-03 & 2003-04 DY. COMMISSIONER OF INCOME- TAX, CIRCLE 2(2), HYDERABAD. VS. GAYATRI AGRO INDUSTRIAL POWER LTD., HYDERABAD. PAN AABCG 4892A (APPLICANT) (RESPONDENT) REVENUE BY : SHRI A. SITARAMA RAO ASSESSEE BY : SHRI B. SAI PRASAD DATE OF HEARING 09-12-2016 DATE OF PRONOUNCEMENT 09-12-2016 O R D E R PER S. RIFAUR RAHMAN, A.M.: THESE MISCELLANEOUS APPLICATIONS FILED BY THE REVE NUE ARISE OUT OF THE ORDER OF ITAT A BENCH, HYDERABAD BENCHES, HYD ERABAD IN ITA NOS. 104 & 105/HYD/2015, DATED 18/12/2015. 2. IN THE MAS FILED BEFORE US, THE DEPARTMENT STATE D AS UNDER: THE HON'BLE ITAT DISMISSED THE APPEAL OF THE REVENU E REFERRING THE CBDT CIRCULAR NO.21/2015, DATED 10-12-2015 HOLD ING THAT THE TAX EFFECT IS BELOW THE LIMITS AS PRESCRIBED BY THE CBDT. HOWEVER, IT IS SUBMITTED THAT THE ABOVE ISSUES ARE COVERED UNDER EXCEPTION CLAUSE 8(C) OF THE CIRCULAR NO.21/2015 I. E., THE ISSUES WERE RAISED BY THE REVENUE AUDIT AND THE SAME WERE ACCEPTED BY THE DEPARTMENT. GROUNDS OF APPEAL. 1. WHETHER IN FACTS AND CIRCUMSTANCES OF THE CASE, THE CIT(A) IS JUSTIFIED IN ALLOWING THE APPEAL OF THE ASSESSEE WI THOUT CONSIDERING THE FACT THAT THE OTHER INCOME CANNOT B E A PART OF ELIGIBLE INCOME FOR CLAIMING DEDUCTION U.S.80IA. 2. ANY OTHER GROUND THAT MAY BE RAISED DURING THE H EARING. 2 M.A. NOS. 59 & 60/HYD/16 GAYATRI AGRO INDUSTRIAL POWER LTD. THE HON'BLE TRIBUNAL VIDE ITS ORDER IN ITA NO.104 & 105/HYD12015 DATED 18.12.2015 DISMISSED THE REVENUE APPEAL IN VIEW OF LOW TAX EFFECT AS PER BOARD CIRCULAR NO. 15/2015. HOWEVER, IT IS SUBMITTED THAT THE GROUNDS RAISED BY THE DEPARTMENT BEFORE THE HON'BLE TRIBUNAL ARE COVERED UNDER EXCEPTION CLAUSE I.E., 8(C) OF THE CBDT CIRCULAR NO .2112015. IN VIEW OF THE ABOVE, IT IS PRAYED THAT THE HON'BLE TRIBUNAL MAY ADJUDICATE THE GROUND(S) RAISED BY THE REVENUE AS T HE SAME WERE NOT ADJUDICATED IN THE ORDER OF THE ITAT IN IT A NOS.104 & 105/HYDI2015, DATED 18.12.2015 AND PASS SUCH ORDERS IN THE INTEREST OF JUSTICE. 3. REFERRING TO THE ABOVE, THE LD. DR SUBMITTED THA T THE ORDER DATED 18/12/2015 MAY BE RECALLED TO ADJUDICATE THE GROUNDS RAISED BY THE REVENUE IN THE M.AS. AND HE BROUGHT TO OUR NOTI CE THE AUDIT OBJECTIONS RAISED AND ACCEPTED BY THE DEPARTMENT BA SED ON WHICH THE ASSESSMENT WAS REOPENED SUBSEQUENTLY. 4. THE LD. AR, ON THE OTHER HAND, CONCEDED TO THE S UBMISSIONS MADE BY THE LD. DR. 5. CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED MAT ERIAL FACTS ON RECORD. AS SUBMITTED BY THE REVENUE IN THE M.A., WE ARE INCLINED TO RECALL OUR ORDER DATED 18/12/2015 PASSED IN ITA NOS . 104 & 105/HYD/2015 AND POST THE APPEAL FOR HEARING ON 09/03/2017 TO ADJUDICATE THE GROUNDS RAISED BY THE REVENUE IN THE M.AS. AS THE AFORESAI D DATE OF HEARING OF APPEALS WERE ANNOUNCED IN THE OPEN COURT IN PRESENC E OF BOTH THE COUNSELS, NO SEPARATE NOTICE OF HEARING IS REQUIRED TO BE ISSUED TO THE PARTIES. 4. IN THE RESULT, BOTH THE M.AS. OF THE REVENUE AR E ALLOWED. PRONOUNCED IN THE OPEN COURT ON 9 TH DECEMBER, 2016. SD/- SD/- (P. MADHAVI DEVI) (S. RIFAUR RAHM AN) JUDICIAL MEMBER A CCOUNTANT MEMBER HYDERABAD, DATED: 9 TH DECEMBER, 2016 KV 3 M.A. NOS. 59 & 60/HYD/16 GAYATRI AGRO INDUSTRIAL POWER LTD. COPY TO:- 1) DCIT, CIRCLE 2(2) 8 TH FLOOR, B-BLOCK, ROOM NO. 824, I.T. TOWERS, AC GUARDS, HYDERABAD. 2) M/S GAYATRI AGRO INDUSTRIAL POWER LTD., 8-2-348/ 1, F.NO. 102, FLORA APARTMENTS, ROAD NO. 3, BANJARA HILLS, H YDERABAD. 3 CIT(A)- V, HYDERABAD 4) CIT - II, HYDERABAD 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDE RABAD.