Brindix Apparel India Pvt. Ltd.,, Visakhapatnam v. The JCIT,, Visakhapatnam

ITA 153/VIZ/2016 | 2010-2011
Pronouncement Date: 10-11-2017 | Result: Allowed

Appeal Details

RSA Number 15325314 RSA 2016
Assessee PAN AACCB6569L
Bench Visakhapatnam
Appeal Number ITA 153/VIZ/2016
Duration Of Justice 1 year(s) 7 month(s) 8 day(s)
Appellant Brindix Apparel India Pvt. Ltd.,, Visakhapatnam
Respondent The JCIT,, Visakhapatnam
Appeal Type Income Tax Appeal
Pronouncement Date 10-11-2017
Appeal Filed By Assessee
Tags No record found
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 10-11-2017
Assessment Year 2010-2011
Appeal Filed On 01-04-2016
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM . . . BEFORE SHRI V. DURGA RAO JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH ACCOUNTANT MEMBER . / I . T .A.NO. 153 /VIZ/ 201 6 ( / ASSESSMENT YEAR: 20 1 0 - 1 1 ) BRANDIX APPAREL INDIA PVT. LTD. PLOT NO.18 PUDIMADAKA ROAD ATCHUTAPURAM VISAKHAPATNAM [ PAN : A ACCB6569L ] THE JCIT RANGE 5 VISAKHAPATNAM ( / APPELLANT) ( / RESPONDENT) / APPELLANT BY : SHRI G.V.N.HARI A R / RESPONDENT BY : S MT V . MADHUVANI DR / DATE OF HEARING : 07 . 1 1 .2017 / DATE OF PRONOUNCEMENT : 10 . 1 1 .2017 / O R D E R PER D.S. SUNDER SINGH ACCOUNTANT MEMBER : 1. THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE PR. COMMISSIONER OF INCOME TAX [PR.CIT] - 2 VISAKHAPATNAM VIDE F.NO.CIT - 2 ITA NO .153 /VIZ/201 6 M/S BRANDIX APPAREL INDIA PVT LTD . VISAKHAPATNAM 2/VSP/263/17(14 - 15)/2015 - 16 DATED 27 .0 1 .201 6 FOR THE ASSESSMENT YEAR 20 1 0 - 1 1 . 2. IN THIS CASE THE ASSESSEE FILED RETURN OF INCOME FOR THE ASSESSMENT YEAR 2010 - 11 DECLARING TOTAL INCOME OF RS.20 42 908/ - AND THE ASSESSMENT WAS COMPLETED U/S 143(3) ON TOTAL INCOME OF RS.1 04 41 150/ - . LD.PR.CIT - 2 VISAKHAPATNAM HAS TAKEN UP THE CA SE FO R REVISION AND FOUND THAT THAT THE ASSESSEE HAD RECEIVED A SUM OF RS.48 50 000/ - TOWARDS TRAINING SUBSIDY FROM GOVT . OF ANDHRA PRADESH UNDER THE N EW TEXTILE AND APPAREL PROMOTION POLICY AND OFFERED THE SAME AS OTHER INCOME AND CLAIMED AND WAS ALLOWED THE DEDUCTION U/S 10AA OF THE ACT. A S PER SUB - CLAUSE(I) OF SUB - SECTION(1) OF 10AA THE PROFITS AND GAINS DERIVED FROM THE EXPORT OF ARTICLE OR THING OR FROM SERVICES IS ELIGIBLE FOR CLAIMING DE DUCTION U/S 10AA OF THE I.T.ACT. THE LD.PR. CIT FOUND THAT THERE WAS NO DOCUMENTARY EVIDENCE AVAILABLE ON RECORD TO SHOW THAT THE ASSESSEE COMPANY IS ELIGIBLE FOR DEDUCTION U/S 10AA OF THE ACT ON THE SUBSIDY RECEIVED . F URTHER T HE ASSESSEE ALSO HAS NOT FURNISHED THE DETAILS OF TRAINING IMPARTED TO THE EMPLOYEES HENCE THE COMMISSIONER WAS OF THE VIEW THAT THE SAID RECEIPT TAKES THE CHARACTER OF INCOME FROM OTHER SOURCES AND NOT ELIGIBLE FOR DEDUCTION U/S 10AA. THE ASSESSING OFFICER (AO) HAS NOT EXAMINED THE ABOVE 3 ITA NO .153 /VIZ/201 6 M/S BRANDIX APPAREL INDIA PVT LTD . VISAKHAPATNAM ISSUE . HENCE THE LD.PR.CIT HAS TAKEN UP THE CASE FOR RE VISION AND ISSUED THE SHOW CAUSE NOTICE U/S 263 CALLING FOR THE ASSESSEES EXPLANATION AND THE ASSESSEE FURNISHED THE EXPLANATION . N OT BEING CONVINCED WITH THE EXPLANATION THE LD. PR.CIT HELD THAT THE ASSESSMENT MADE U/S 143(3) WA S ERRONEOUS AND PREJUDICI AL TO THE INTEREST OF THE REVENUE AND SET ASIDE THE ORDER PASSED U/S 143(3) WITH A DIRECTION TO REDO THE SAME. AGAINST THE ORDER OF THE LD. PR.CIT THE ASSESSEE IS IN APPEAL BEFORE US. 3. DURING THE APPEAL HEARING LD.AR ARGUED THAT THE TRAINING SUBSIDY RECEIVED FROM THE GOVT. OF ANDHRA PRADESH UNDER THE NEW TEXTILE AND APPAREL PROMOTION POLICY IS DIRECTLY RELATED TO THE BUSINESS OF THE ASSESSEE AND REQUIRED TO BE ASSESSED AS BUSINESS INCOME AND ELIGIBLE FOR DEDUCTION U/S 10AA OF THE I.T.ACT. THE LD.AR FURTHER SUBMITTED THAT THOUGH THE PR. CIT HAS SET ASIDE THE ORDER WITH A DIRECTION TO REDO THE SAME THE PR. CIT HAS GIVEN A FINDING THAT THE RECEIPT WOULD TAKE THE CHARACTER OF INCOME FROM OT HER SOURCES GIV ING INDICATION TO THE AO TO MAKE THE ADDITION WITHOUT VERIFYING THE MERITS OF THE CASE. THEREFORE THE LD.AR ARGUED THAT THE FACTS AND THE LEGAL ASPECTS REQUIRE FURTHER VERIFICATION TO DECIDE THE ISSUE HENCE REQUESTED TO MODIFY THE ORDE R OF THE LD.PR.CIT TO ENABLE THE AO TO VERIFY 4 ITA NO .153 /VIZ/201 6 M/S BRANDIX APPAREL INDIA PVT LTD . VISAKHAPATNAM THE FACTUAL AND LEGAL ASPECTS REGARDING THE ELIGIBILITY AND T AKE APPROPRIATE DECISION AS PER LAW. 4. ON THE OTHER HAND LD.DR DID NOT OBJECT FOR REMITTING THE MATTER BACK TO THE FILE OF THE AO TO VERIFY THE F ACTS AND LAW AND TO DECIDE THE ISSU E ON MERITS. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL PLACED ON RECORD. IN THIS CASE THE ASSESSEE HAD RECEIVED SUBSIDY FROM GOVT. OF ANDHRA PRADESH UNDER THE NEW TEXTILE AND APPAREL PROMOTION POLICY FOR AN AMOUNT OF RS.48 50 000/ - . THE ASSESSEE HAS OFFERED THE SAME AS BUSINESS INCOME AND CLAIMED THE DEDUCTION U/S 10AA WHICH WAS ALLOWED BY THE AO. THE PR.CIT ON REVISION FOUND THAT THERE WAS NO EVIDENCE AVAILABLE ON RECORD TO SHOW THAT THE ASSESSEE COMPANY IS ELIGIBLE FOR DEDUCTION U/S 10AA OF THE ACT. FURTHER THERE WAS NO IN FORMATION AVAILABLE BEFORE THE PR. CIT AS TO WHETHER THE ASSESSEE HAS IMPARTED TRAINING TO THE EMPLOYEES OR NOT. THEREFORE THE ISSUE NEEDS FURTHER VERIFICATION WITH REGARD TO THE IMPARTING OF TRAINING TO THE EMPLOYEES AND ALSO ELIGIBILITY CONDITIONS FOR CLAIMING THE DEDUCTION U/S 10AA. THE AO NEED TO VERIFY WHETHER THE SUBSIDY RECEIVED FROM GOVT. OF ANDHRA PRADESH TAKES THE 5 ITA NO .153 /VIZ/201 6 M/S BRANDIX APPAREL INDIA PVT LTD . VISAKHAPATNAM CHARACTER OF BUSINESS INCOME AND ELIGIBLE FOR DEDUCT ION U/S 10AA OR NOT. THEREFORE WE SET ASIDE THE ORDER OF THE LD.PR.CIT AND REMIT THE ISSUE BACK TO THE FILE OF THE AO AND KEEP THE ISSUE OPEN TO VERIFY THE FACTS AND THE LEGAL POSITION AND DECIDE THE ISSUE AFRESH ON MERITS. 6. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 10 TH NOV 20 17 . SD/ - SD/ - ( . ) ( . . ) (V. DURGA RAO) ( D.S. SUNDER SINGH ) /JUDICIAL MEMBER /ACCOUNTANT MEMBER /VISAKHAPATNAM /DATED : 10 . 1 1 .2017 L. RAMA SPS 6 ITA NO .153 /VIZ/201 6 M/S BRANDIX APPAREL INDIA PVT LTD . VISAKHAPATNAM / COPY OF THE ORDER FORWARDED TO: - 1. / THE APPELLANT - BRANDIX APPAREL INDIA PVT. LTD. PLOT NO.18 PUDIMADAKA ROAD ATCHUTAPURAM VISAKHAPATNAM 2 . / THE RESPONDENT THE JCIT RANGE 5 VISAKHAPATNAM 3 . THE ASST. COMMISSIONER OF INCOME TAX CIRCLE - 5(1) VISAKHAPATNAM 4. THE PR. COMMISSIONER OF INCOME TAX (APPEALS) - 2 VISAKHAPATNAM 5 . / DR ITAT VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT VISAKHAPATNAM