ACIT, CHENNAI v. M/s. Primus Enterprises, Pondicherry

ITA 1570/CHNY/2009 | 2006-2007
Pronouncement Date: 03-03-2011 | Result: Dismissed

Appeal Details

RSA Number 157021714 RSA 2009
Assessee PAN AABCP7920Q
Bench Chennai
Appeal Number ITA 1570/CHNY/2009
Duration Of Justice 1 year(s) 4 month(s) 27 day(s)
Appellant ACIT, CHENNAI
Respondent M/s. Primus Enterprises, Pondicherry
Appeal Type Income Tax Appeal
Pronouncement Date 03-03-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 03-03-2011
Date Of Final Hearing 03-03-2011
Next Hearing Date 03-03-2011
Assessment Year 2006-2007
Appeal Filed On 07-10-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHENNAI BENCH A : CHENNAI [BEFORE SHRI HARI OM MARATHA JUDICIAL MEMBER AND SHRI ABRAHAM P GEORGE ACCOUNTANT MEMBER] I.T.A.NO.1570/MDS/2009 ASSESSMENT YEAR : 2006-07 THE ACIT CIRCLE I PUDUCHERRY VS M/S PRIMUS ENTERPRISES PVT. LTD B-22 & 36 PIPDC INDUSTRIAL ESTATE SEDARAPET PUDUCHERRY 605 111 [PAN - AABCP7920Q] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.E.B RENGARAJAN JR. STANDING COUNSEL RESPONDENT BY : DR.ANITA SUMANTH O R D E R PER HARI OM MARATHA JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE FOR ASSESSM ENT YEAR 2006-07 IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-XII C HENNAI DATED 30.6.2009. 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL IS REGARD ING THE FINDING OF THE LD. CIT(A) THAT MAKING OF PILFER-PROOF CAPS FROM PRINTED ALUMINIUM SHEETS AMOUNTS TO MANUFACTURING ACTIVITY. ACCORDING TO THE ASSESSING OFFICER THE ASSESSEE-COMPANY IS MAKING P ILFER-PROOF CAPS ITA 1570/2009 :- 2 -: FROM THE ALUMINIUM SHEETS WHICH DO NOT UNDERGO ANY CHANGE SO AS TO BRING THE FINAL PRODUCT WHICH IS DISTINCT AND DIFFE RENT FROM THE RAW MATERIAL THEREFORE THIS WOULD NOT AMOUNT TO MANUF ACTURING ACTIVITY. HE HAS ALSO OBSERVED THAT CERTAIN PRINTING JOBS WER E GOT DONE BY M/S HI-WIDE ENTERPRISES PVT. LTD THEREFORE FOR THAT REASON ALSO THIS WOULD NOT AMOUNT TO MANUFACTURING ACTIVITY. ACCORDING T O THE LD. CIT(A) THE ASSESSEE USES ALUMINIUM SHEETS AND CONVERTS INT O PILFER-PROOF CAPS WHICH IS AN ENTIRELY DIFFERENT ARTICLE AND COMMERCI ALLY IDENTIFIABLE HAVING ALTOGETHER DIFFERENT USE THEREFORE THE ACT IVITY OF THE ASSESSEE- -COMPANY AMOUNTS TO MANUFACTURING ACTIVITY. 3. BEFORE US REVENUE HAS CHALLENGED THIS FINDING OF T HE LD. CIT(A) AND HAS REPEATED THE SAME REASONS AS WERE TAKEN BY THE ASSESSING OFFICER. AT THE TIME OF HEARING IT WAS FOUND THAT THE ISSUE INVOLVED IN THIS APPEAL STANDS SQUARELY COVERED BY THE DECISION OF THIS VERY BENCH TAKEN IN THE CASE OF ACIT VS M/S CEASER ENTERPRISES (P) LTD IN I.T.A.NOS.912 TO 916/MDS/2009 ORDER DATED 23.11.20 09 IN WHICH ON IDENTICAL FACTS IT HAS BEEN HELD THAT CONVERSION OF PRINTED ALUMINIUM SHEETS INTO PILFER-PROOF CAPS USED IN BOTTLES IS A MANUFACTURING/ PRODUCTION ACTIVITY ELIGIBLE FOR DEDUCTION U/S 80-I B OF THE ACT. THE FACTS OF THIS CASE ARE EXACTLY IDENTICAL. THE REVENUE CO ULD NOT DIFFERENTIATE FACTS AND ISSUE INVOLVED IN THIS APPEAL. THEREFORE BY RESPECTFULLY ITA 1570/2009 :- 3 -: FOLLOWING THE ORDER OF THE TRIBUNAL (SUPRA) WE CAN NOT ALLOW THIS APPEAL OF THE REVENUE. 4. IN THE RESULT THE APPEAL FILED BY THE REVENUE STAN DS DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 3 .3.2011. SD/- SD/- (ABRAHAM P GEORGE) ACCOUNTANT MEMBER ( HARI OM MARATHA ) JUDICIAL MEMBER DATED: 3 RD MARCH 2011 RD COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR