Box Board Containers,, v. The ACIT, Gandhidham Circle,,

ITA 155/RJT/2007 | 2003-2004
Pronouncement Date: 29-07-2011 | Result: Allowed

Appeal Details

RSA Number 15524914 RSA 2007
Bench Rajkot
Appeal Number ITA 155/RJT/2007
Duration Of Justice 4 year(s) 5 month(s) 15 day(s)
Appellant Box Board Containers,,
Respondent The ACIT, Gandhidham Circle,,
Appeal Type Income Tax Appeal
Pronouncement Date 29-07-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 29-07-2011
Date Of Final Hearing 25-07-2011
Next Hearing Date 25-07-2011
Assessment Year 2003-2004
Appeal Filed On 13-02-2007
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH RAJKOT. BEFORE SHRI A.L. GEHLOT (AM) AND SHRI N.R.S. GANESA N (JM) I.T.A. NO.155 RJT/2007 & I.T.A. NO. 1134/RJT/2009. (ASSESSMENT YEAR 2003-04) M/S. BOX BOARD CONTAINERS VS. THE A.C.I. T. PLOT NO.53 SECTOR 2 GA NDHIDHAM CIRCLE KSEZ GANDHIDHAM. GANDHIDHAM. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI VIMAL DESAI C.A. DEPARTMENT BY : SHRI N. R. SONI D.R. I.T.A. NO.522 RJT/2007 (ASSESSMENT YEAR 2 004-05) M/S. BOX BOARD CONTAINERS VS. THE I.T. O WARD -1 PLOT NO.53 SECTOR 2 GANDHIDHAM. KSEZ GANDHIDHAM. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI D. M. RINDANI C.A. DEPARTMENT BY : SHRI N. R. SONI D.R. O R D E R PER AL GEHLOT AM: THESE APPEALS ARE DIRECTED AGAI NST THE ORDER OF DIFFERENT C.I.TS.(A) RAJKOT DATED 04-12-2006 26-1 0-2009 AND 16-10- 2007 FOR ASSESSMENT YEARS 2003-04 AND 2004-05 RESPE CTIVELY. THE ORDER OF THE C.I.T.(A) DATED 26-10-2009 IS IN RESPE CT OF PENALTY U/S.271(1)(C) FOR A. Y. 2003-04. IT A. 155 522-RJT-2007 & ITA 1134-RJ T-2009.. A.Y.2003 -04 & 04-05.. 2 2. A COMMON GROUND RAISED ON MERIT BY THE ASSESSEE IN APPEAL FOR A.Y. 2003-04 & 2004-05 IS IN RESPECT OF EXEMPTI ON CLAIMED BY THE ASSESSEE U/S. 10A OF THE ACT. SINCE THE GROUND RAI SED IN THESE APPEALS ARE BASED ON IDENTICAL SET OF FACTS THEREF ORE SAME ARE DECIDED BY THIS COMMON ORDER. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS MANUFACTURING AND SELLING ALL TYPE OF PACKING MATER IALS. THE ASSESSEE CLAIMED EXEMPTION U/S. 10A OF THE ACT. THE ASSESSE E CLAIMED THE SAID DEDUCTION ON THE GROUND THAT THE ASSESSEE IS E NGAGED IN BUSINESS OF MANUFACTURING OF PACKING MATERIALS IN F REE TRADE ZONE WHICH IS NOW CONVERTED INTO SPECIAL ECONOMIC ZONE. THE A.O. DENIED THE BENEFIT OF EXEMPTION U/S. 10A CONTENDING THAT THE ASSESSEE HAS NOT MADE ANY EXPORT OUT OF INDIA AND T HAT REMITTANCE IS NOT IN FOREIGN EXCHANGE. THE ORDER OF THE A.O. HAS BEEN CONFIRMED BY THE C.I.T.(A) OBSERVING THAT THE ASSESSEE HAS FA ILED TO COMPLY WITH THE CONDITIONS LAID DOWN FOR THE EXEMPTION. 4. THE LEARNED REPRESENTATIVES OF THE PARTIES REQUE STED FOR KEEPING THE HEARING IN ABEYANCE FOR A PERIOD OF THR EE MONTHS ON THE GROUND THAT A REPRESENTATION WAS MADE TO THE FINANC E MINISTRY THROUGH GANDHIDHAM CHAMBER OF COMMERCE & INDUSTRY F OR CLARIFICATION THAT THE SERVICE UNITS AT SEZ ESTABLI SHED BEFORE 01-04- 1995 ARE AT PAR WITH OTHER ELIGIBLE UNITS. THE ASS ESSEE ESTABLISHED IT A. 155 522-RJT-2007 & ITA 1134-RJ T-2009.. A.Y.2003 -04 & 04-05.. 3 THE UNITS AT A SEZ PRIOR TO 01-0-4-1995. THE ASSES SEE FILED A COPY OF LETTER ACKNOWLEDGING REPRESENTATION BY THE FINANCE MINISTER DATED 04-03-2008 WHEREIN IT IS STATED THAT THE OFFICER CO NCERNED IN THE MINISTRY ASKED TO LOOK INTO THE MATTER. AFTER CONS IDERING THE FACTS OF THE CASE AND AFTER CONSIDERING THE CONTENTION OF TH E LEARNED REPRESENTATIVES OF THE PARTIES WE FIND THAT THE FI NAL OUTCOME OF THE FINANCE MINISTRY BEARS TO THE ISSUES RAISED IN THE GROUNDS OF APPEAL AND CERTAIN FACTS WHILE ALSO REQUIRE TO BE PUT ON R ECORD AFTER CONSIDERING THE FINAL OUTCOME OF THE FINANCE MINIST RY. THESE FACTS CAN BE PUT ON RECORD AFTER FINAL OUTCOME FROM THE R EPRESENTATION MADE TO THE FINANCE MINISTRY AND VERIFICATION OF RE LEVANT FACTS. THE PERTAINING RECORDS ARE AVAILABLE WITH THE A.O. UND ER THE CIRCUMSTANCES WE THINK PROPER TO SEND BACK THESE A PPEALS TO THE FILE OF THE A.O. WITH A DIRECTION TO CONSIDER THE ASSESS EES CLAIM IN ACCORDANCE WITH FINAL OUTCOME OF THE MINISTRY AND I F THE FINAL OUTCOME IS NOT OUTCOME WITHIN A REASONABLE PERIOD THE A.O. IS AT LIBERTY TO PASS SUCH AN ORDER IN ACCORDANCE WITH LAW AFTER PRO VIDING REASONABLE OPPORTUNITY OF HEARING TO BOTH THE SIDES. THE ITA 1 134/RJT/2009 IS RELATED TO PENALTY U/S.271(1)(C) FOR A.Y. 2003-04 LEVIED ON DISALLOWANCE OF CLAIM U/S.10A. SINCE THE MATTER RE LATING TO THE MERITS IS REMITTED TO THE A.O. THEREFORE WE THINK IT PRO PER TO SEND BACK THIS PENALTY MATTER ALSO TO THE FILE OF THE A.O. WITH A DIRECTION TO DECIDE THE PENALTY U/S.271(1)(C) OF THE ACT IN ACCORDANCE WITH LAW AFTER CONSIDERING THE FINAL OUTCOME OF THE MERITS AND AFT ER PROVIDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. IT A. 155 522-RJT-2007 & ITA 1134-RJ T-2009.. A.Y.2003 -04 & 04-05.. 4 5. IN THE RESULT ALL THE THREE APPEALS ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 29-07-2011. SD/- SD/- (N.R.S. GANESAN) ( A. L. GEHLOT ) JUDICIAL MEMBER. ACCOUNTANT MEMBER. RAJKOT DT :29-07-2011. NVA/- COPY TO: 1.M/S. BOX BOARD CONTAINERS GANDHIDHAM. 2.THE A.C.I.T. GANDHIDHAM CIRCLE GANDHIDHAM. 3.THE CIT(A)- RAJKOT. 4.THE C.I.T. 5.THE D.R. I.T.A.T. RAJKOT. TRUE COPY. BY ORDER ASSTT.REGISTRAR ITAT RAJKOT.