ITO, Nurpur v. M/s United Wire Products, Kangra

ITA 1171/CHANDI/2011 | 2008-2009
Pronouncement Date: 08-02-2012 | Result: Dismissed

Appeal Details

RSA Number 117121514 RSA 2011
Bench Chandigarh
Appeal Number ITA 1171/CHANDI/2011
Duration Of Justice 2 month(s) 3 day(s)
Appellant ITO, Nurpur
Respondent M/s United Wire Products, Kangra
Appeal Type Income Tax Appeal
Pronouncement Date 08-02-2012
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 08-02-2012
Date Of Final Hearing 23-01-2012
Next Hearing Date 23-01-2012
Assessment Year 2008-2009
Appeal Filed On 05-12-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B CHANDIGARH BEFORE SHRI H.L.KARWA VICE PRESIDENT AND SHRI MEHAR SINGH ACCOUNTANT MEMBER ITA NO. 1171/CHD/2011 ASSESSMENT YEAR: 2008-09 ITO V UNITED WIRE PRODUCTS NURPUR. VPO LODHWAN THE-NURPUR DISTT.KANGRA. PAN: AAAFU-3371J (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI J.S.BHASIN RESPONDENT BY : SMT. JAISHREE SHARMA DATE OF HEARING : 23.01.2012 DATE OF PRONOUNCEMENT : 8.2.2012 ORDER PER MEHAR SINGH AM THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T ORDER OF CIT(A) SHIMLA PASSED U/S 250(6) OF THE INC OME- TAX ACT 1961 (IN SHORT 'THE ACT') DATED 01.09.2011 RELATING TO ASSESSMENT YEAR 2008-09. 2. IN THIS APPEAL THE REVENUE HAS RAISED THE FOLLO WING GROUNDS OF APPEAL: 1. ON THE FACTS AND CIRCUMSTANCES THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.92 40 546/- ON ACCOUNT OF DISALLOWANCE OF DEDUCTION CLAIMED U/S 80IC OF THE INCOME-TAX ACT.. 2. IN THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. CIT(A) HAS FURTHER ERRED IN DELETING ADDITION OF RS.52 746/- MADE BY THE AO ON ACCOUNT OF MISC. INCOME. 3. IT IS PRAYED THAT THE ORDER OF THE LD. CIT(A) B E SET ASIDE AND THAT OF THE AO RESTORED. 2 4. THE APPELLANT CRAVES LEAVE TO ADD ANY OTHER GROUND OF APPEAL WHICH MAY ARISE AT THE TIME OF HEARING. 3. IN THE COURSE OF PRESENT APPELLATE PROCEEDINGS IT TRANSPIRED THAT GROUND NO.1 PERTAINING TO DELETION OF ADDITION OF RS.92 40 546/- ON ACCOUNT OF DISALLOWAN CE OF DEDUCTION U/S 80IC OF THE ACT IS COVERED BY THE DECISION OF THE ITAT CHANDIGARH BENCH IN ASSESSEE' S OWN CASE IN ITA NO. 383/CHD/2009 ASSESSMENT YEAR 2005-06. THE LD. CIT(A) FOLLOWING THE SAID DECISI ON DELETED THE IMPUGNED ADDITION. THE RELEVANT PART O F THE FINDINGS OF THE LD. CIT(A) IS REPRODUCED HEREUNDER : 6. I HAVE PERUSED THE RIVAL SUBMISSIONS AND FACTS OF THE CASE AND THE ORDER OF HON'BLE JURISDICTIONAL ITAT. THE A/RS HAVE BROUGHT OUT IN DETAIL THE PROCESS INVOLVED FROM THE RAW MATERIAL STAGE TO THE FINISHED PRODUCT STAGE TO SHOW THAT THE FACTS OF THE APPELLANTS CASE ARE SIMILAR TO THE FACTS OF M/S HIMACHAL STEEL & WIRE IN WHOSE CASES THE HON'BLE ITAT B BENCH CHANDIGARH IN ITA NO. 383/CHD/2009 FOR A.Y. 2005-06 VIDE ORDER DATED 30.11.2009 ALLOWED THE DEDUCTION U/S 80IC OF THE IT ACT BY HOLDING THAT THE PROCESS INVOLVED AMOUNTED TO MANUFACTURING. I HAVE PERUSED THE ORDER OF THE HON'BLE TRIBUNAL AND FIND THAT THE FACTS OF THIS CASE ARE SIMILAR TO THE APPELLANTS CASE. EVEN LD. AO ADMITTED THE SAME IN THE LAST PARA ON THE PENULTIMATE PAGE OF HER ORDER THAT SHE WAS NOT FOLLOWING THE ITAT ORDER IN THE CASE OF M/S HIMACHAL STEEL &WIRES BECAUSE THE REVENUE HAD FILED AN APPEAL IN THE HIGH COURT OF HIMACHAL PRADESH. OBVIOUSLY THIS CANNOT BE A GROUND FOR DISALLOWING THE CLAIM IN THE APPELLANTS CASE. 3 THEREFORE RESPECTFULLY FOLLOWING THE ORDER OF THE HON'BLE JURISDICTIONAL TRIBUNAL (SUPRA) THE DISALLOWANCE OF RS.92 40 546/- IS HEREBY DELETED. ACCORDINGLY THE FINDINGS OF THE LD. CIT(A) ARE UPH ELD AND THIS GROUND OF APPEAL OF THE REVENUE IS DISMISS ED. 4. IN GROUND NO.2 REVENUE CONTENDED THAT CIT(A) ERRED IN DELETING ADDITION OF RS.52 746/- MADE BY T HE AO ON ACCOUNT OF MISCELLANEOUS INCOME. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED RELEVANT RECORD AND FOUND THAT THE ISSUE IS COVERED BY THE DECISION OF THE HON'BLE SUPREME COURT AS FOLLO WED BY THE CIT(A) AND HENCE THE GROUND RAISED BY THE REVENUE IS DISMISSED. THE RELEVANT FINDINGS OF THE CIT(A) AS CONTAINED IN PARA 6.3 ARE REPRODUCED HEREUNDER : 6.3 IN THIS REGARD THE APPELLANT HAS AGITATED THE ADDITION OF RS.52 736/- MADE BY THE LD. AO IN HOLDING THAT MISC. INCOME HAD NO NEXUS WITH THE INDUSTRIAL UNDERTAKING AND THEREFORE WAS COVERED BY 317 ITR 218 (S.C). I HAVE PERUSED THE FACTS OF THE CASE AND FIND THAT MISC. INCOME CREDITED TO P&L A/C WAS NOTHING BUT ON ACCOUNT OF TWO ENTRIES RELATING TO THE MANUFACTURING ACTIVITY VIZ IN RESP ECT OF ADJUSTMENT OF SOME WEIGHT DIFFERENCE OF FINISHED GOODS SUPPLIED OF RS.1400/- FROM AMRITSAR WIRE & METAL INDUSTRIES AND REGARDING RAW MATERIAL OF RS.51 346/- FROM M/S DAWN OIL INDUSTRIES. THESE CREDIT ENTRIES HAVE DIRECT NEXUS WITH THE MANUFACTURING ACTIVITIES OF THE INDUSTRIAL UNDERTAKING AND THEREFORE ARE NOT COVERED BY THE 4 APEX COURT DECISION IN 317 ITR 218. ACCORDINGLY THE ADDITION OF RS.52 734/- IS HEREBY DELETED. 6. IN VIEW OF THE FINDINGS OF THE FACT-SITUATION OF THE CASE THE FINDINGS OF LD. CIT(A) ARE UPHELD AND THI S GROUND OF APPEAL OF THE REVENUE IS ALSO DISMISSED. 7. GROUND NOS. 3 & 4 ARE GENERAL IN NATURE THEREFORE NO SEPARATE ADJUDICATION IS REQUIRED. 8. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH FEB. 2012. SD/- SD/- (H.L.KARWA) (MEHAR S INGH) VICE PRESIDENT ACCOUNTANT MEMBER DATED: 8 TH FEB. 2012. POONAM COPY TO: THE APPELLANT THE RESPONDENT THE CIT(A) CIT DR ASSISTANT REGISTRAR ITAT CHANDIGARH