Nirma Limited, Ahmedabad V. The ACIT, Circle-5, Ahmedabad

MA 73/AHD/2015

• Counselvise Citation: [2016] 124 COUNSELVISE.COM (IT) 3800 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 10 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 19-01-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 01-01-2016
• Assessment Year: 2000-2001
• Appeal Filed On: 09-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH SR D R

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD , , BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER MA NO.73/AHD/2015 AY 2000-01 ( IN ./ IN I.T.A. NO.1002/AHD/2006 ( / ASSESSMENT YEAR : 2000-01) NIRMA LIMITED NIRMA HOUSE ASHRAM ROAD AHMEDABAD (ORIGINAL RESPONDENT) / VS. THE ASST.CIT CENTRAL CIRCLE-1(1) AHMEDABAD (ORIGINAL APPELLANT) ./ ./ PAN/GIR NO. : AAACN 5350 K ( ' / APPLICANT ) .. ( #' / RESPONDENT ) ' $ / APPLICANT BY : SHRI S.N. SOPARKAR, A.R. #' % $ / RESPONDENT BY : SHRI DINESH SINGH, SR.DR &'( % ) / DATE OF HEARING 01/01/2016 *+, % ) / DATE OF PRONOUNCEMENT 19/01/2016 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS MISCELLANEOUS APPLICATION HAS BEEN FILED BY TH E ASSESSEE ON 09.10.2015 (ARISING OUT OF ITA NO.1002/AHD/2006 FOR AY 2000-01) FOR SEEKING MODIFICATION/RECALLING THE TRIBUNALS ORDER (ITAT A BENCH, AHMEDABAD) DATED 26/02/2014. 2. THE SR.LD.COUNSEL FOR THE ASSESSEE REITERATED T HE SUBMISSIONS AS WERE MADE IN THE MISCELLANEOUS APPLICATION AND SUBM ITTED THAT THE MA NO.73/AHD/2015 ( IN ITA NO.1002 /AHD/2006 ) NIRMA LTD. VS. ASST.CIT ASST.YEAR 2000-01 - 2 - OBSERVATION OF THE TRIBUNAL IS FACTUALLY INCORRECT AND THEREBY THERE IS INADVERTENT MISTAKE APPARENT ON RECORD GOING TO THE ROOT OF THE ORDER RENDERING THE ALTERNATIVE FINDING ADVERSE TO THE AP PLICANT. HE SUBMITTED THAT THIS TRIBUNAL WAS PLEASED TO DISMISS THE APPEA L BY FOLLOWING ITS ORDER DATED 26/02/2014 PASSED IN ITA NOS.541 & 558/AHD/20 05 FOR AY 2001- 02 (REVENUES APPEAL & ASSESSEES APPEAL RESPECTIVE LY). HE POINTED OUT THAT IN ITA NOS.541 & 558/AHD/2005, THE TRIBUNAL HA D OBSERVED IN PARA- 38 OF ITS ORDER DATED 26/02/2014 THAT NO MATERIAL W AS BROUGHT BEFORE THE TRIBUNAL TO SHOW THAT THE MANUFACTURING ACTIVITIES AT TRIKAMPURA UNIT WERE CARRIED OUT UNDER THE CONTROL AND SUPERVISION OF THE ASSESSEE. HE SUBMITTED THAT IN THE PAPER-BOOK, THE AGREEMENT WAS DULY ENCLOSED AND, THEREFORE, THE AGREEMENT AS FILED BY THE ASSESSEE W AS NOT CONSIDERED BY THE TRIBUNAL WHILE DECIDING THE ISSUE. THIS HAS RE SULTED INTO MISTAKE APPARENT ON RECORD. 2.1. ON THE CONTRARY, THE LD.SR.DR SHRI DINESH SING H VEHEMENTLY OPPOSED THE SUBMISSIONS OF THE ASSESSEE AND SUBMITT ED THAT THERE IS NO MISTAKE APPARENT ON RECORD. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THIS TRIBUNAL IN ITA NO.1002/AHD/2006 FOR AY 2000-0 1 (ASSESSEES APPEAL) VIDE ORDER DATED 26/02/2014 WAS PLEASED TO DISMISS THE ASSESSEES APPEAL, BY OBSERVING AS UNDER:- MA NO.73/AHD/2015 ( IN ITA NO.1002 /AHD/2006 ) NIRMA LTD. VS. ASST.CIT ASST.YEAR 2000-01 - 3 - 9. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUS ED THE ORDERS OF LOWER AUTHORITIES AND MATERIAL AVAILABLE ON RECO RD. THE ISSUE RELATES TO DISALLOWANCE OF DEDUCTION U/S.80IA OF RS .13,64,48,850/- IN RESPECT OF INCOME DERIVED FROM TRIKAMPURA UNIT. THE SOLE ARGUMENT OF THE LD.AR OF THE ASSESSEE IS THAT THE F ACTS ARE SIMILAR TO THE FACTS OF THE ASSESSMENT YEAR 2001-02 AND THE REFORE, THE ARGUMENTS ADVANCED FOR ASSESSMENT YEAR 2001-02 BE T REATED AS ARGUMENTS FOR THE YEAR UNDER CONSIDERATION. WE FIN D THAT IN THE ASSESSMENT YEAR 2001-02, WE VIDE ORDER OF EVEN DATE PASSED IN ITA NOS.541 & 558/AHD/2005 FOUND THAT THERE WAS NO GOOD REASON TO INTERFERE WITH THE ORDERS OF THE LOWER AUTHORITI ES IN RESPECT OF THIS ISSUE. THEREFORE, WE DECLINE TO INTERFERE WIT H THE ORDERS OF LOWER AUTHORITIES FOR THE YEAR UNDER CONSIDERATION ALSO. THEREFORE, THIS GROUND OF APPEAL OF THE ASSESSEE IS DISMISSED. 3.1. WE FIND THAT THIS TRIBUNAL IN ITA NO.558/AHD/2 005 FOR AY 2001- 02 (ASSESSEES APPEAL) VIDE ORDER DATED 26/02/2014 HAS HELD AS UNDER:- 38. WE FIND THAT NO MATERIAL WAS BROUGHT BEFORE U S TO SHOW THAT THE MANUFACTURING ACTIVITIES AT TRIKAMPURA UNIT WER E CARRIED OUT UNDER THE CONTROL AND SUPERVISION OF THE ASSESSEE. NO COPY OF THE AGREEMENT ENTERED INTO BY THE ASSESSEE WITH THE LES SEE OF THE UNIT COULD BE PRODUCED BY THE ASSESSEE. THE ASSESSEE BR OUGHT NO MATERIAL TO CONTROVERT THE FINDING OF THE LD.CIT(A) THAT THE APPELLANT COMPANY HAS ALSO NOT BEEN ABLE TO ESTABLI SH THAT THE JOB WORKERS ARE THE SPECIFIC AGENT OF THE TRIKAMPURA IN DUSTRIAL UNDERTAKING AND THE APPELLANT WAS EXERCISING ANY QU ALITY CONTROL AS NO EMPLOYEES WERE THERE IN THE SAID DIVISION TO EXERCISE ANY CONTROL OVER THE PRODUCTION. 3.2. THE SR.LD.COUNSEL FOR THE ASSESSEE HAS POINTED OUT THAT THE AGREEMENT IS DULY ENCLOSED IN THE PAPER-BOOK WHICH GOES TO SHOW THAT THERE WAS AGREEMENT EXISTING BETWEEN THE ASSESSEE-C OMPANY AND MA NO.73/AHD/2015 ( IN ITA NO.1002 /AHD/2006 ) NIRMA LTD. VS. ASST.CIT ASST.YEAR 2000-01 - 4 - M/S.NISARG ENTERPRISE PVT.LTD. THE LD.COUNSEL FOR THE ASSESSEE HAS DRAWN OUR ATTENTION TOWARDS PAGE NO.30 OF THE PAPER-BOOK, WHEREIN A LETTER DATED 20/11/1999 IS ADDRESSED TO NISARG ENTERPRISE PVT.LTD. IT IS THE CONTENTION THAT IF THESE EVIDENCES WERE CONSIDERED, THEN THE CLAIM OF THE ASSESSEE FOR DEDUCTION U/S.80IA OF THE ACT WOULD HA VE BEEN ALLOWED. UNDER THESE FACTS, WE DEEM IT PROPER TO RECALL TRIB UNALS ORDER DATED 26/02/2014 PASSED IN ITA NO.1002/AHD/2006 FOR AY 20 00-01 AND FIX THE ASSESSEES APPEAL TO DECIDE THE ISSUE OF ALLOWA BILITY OF DEDUCTION U/S.80IA OF THE ACT IN THE LIGHT OF THE AGREEMENT A ND OTHER EVIDENCES AS PLACED BY THE ASSESSEE ON RECORD. THE REGISTRY I S DIRECTED TO FIX THE ASSESSEES APPEAL IN ITA NO.1002/AHD/2006 FOR AY 20 00-01 FOR HEARING AFRESH IN DUE COURSE. ACCORDINGLY, NOTICE BE ISSU ED TO BOTH THE PARTIES. 4. IN THE RESULT, THE MISCELLANEOUS APPLICATION FI LED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON TUESDAY, THE 19 TH DAY OF JANUARY, 2016 AT AHMEDABAD. SD/- SD/- ( ) ( ) ( PRAMOD KUMAR ) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 19/ 01 /2016 0)..& , '.&../ T.C. NAIR, SR. PS MA NO.73/AHD/2015 ( IN ITA NO.1002 /AHD/2006 ) NIRMA LTD. VS. ASST.CIT ASST.YEAR 2000-01 - 5 - !'#$%&%# / COPY OF THE ORDER FORWARDED TO : 1. ' / THE APPLICANT 2. #' / THE RESPONDENT. 3. 123 4 / CONCERNED CIT 4. 4 ( ) / THE CIT(A)-I, AHMEDABAD 5. 5'6 &23 , ) 23 , , 1 / DR, ITAT, AHMEDABAD 6. 689 :( / GUARD FILE. / BY ORDER, //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 15.1.16 (DICTATION-PAD 7-- PAGES ATTACHED AT THE END OF THIS FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER .. 19.1.16 3. OTHER MEMBER... 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.19.1.16 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 19.1.16 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER