DCIT, CHENNAI v. Sundaram Auto Components Ltd., CHENNAI

ITA 1576/CHNY/2016 | 2004-2005
Pronouncement Date: 21-10-2016 | Result: Dismissed

Appeal Details

RSA Number 157621714 RSA 2016
Assessee PAN AAACS7027G
Bench Chennai
Appeal Number ITA 1576/CHNY/2016
Duration Of Justice 4 month(s) 22 day(s)
Appellant DCIT, CHENNAI
Respondent Sundaram Auto Components Ltd., CHENNAI
Appeal Type Income Tax Appeal
Pronouncement Date 21-10-2016
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 21-10-2016
Date Of Final Hearing 05-10-2016
Next Hearing Date 05-10-2016
Assessment Year 2004-2005
Appeal Filed On 30-05-2016
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : CHENNAI . . . ! . '#'$ % !& ' [BEFORE SHRI N.R.S. GANESAN JUDICIAL MEMBER AND SHRI ABRAHAM P. GEORGE ACCOUNTANT MEMBER ] ./ I.T.A. NO. 1576/MDS/2016 / ASSESSMENT YEAR : 2004-2005. THE DEPUTY COMMISSIONER OF INCOME TAX CORPORATE CIRCLE 6(2) CHENNAI 600 034. VS. M/S. SUNDRAM AUTO COMPONENTS LTD NO.29 JAYALAKSHMI ESTATES HADDOWS ROAD CHENNAI 600 006. [PAN AAACS 7027G ] ( () / APPELLANT) ( *+() /RESPONDENT) / APPELLANT BY : SHRI. A.V. SREEKANTH IRS JCIT. /RESPONDENT BY : SHRI. R. VIJAYARAGHAVAN ADVOCATE / DATE OF HEARING : 05-10-2016 ! / DATE OF PRONOUNCEMENT : 21-10-2016 / O R D E R PER ABRAHAM P. GEORGE ACCOUNTANT MEMBER THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST AN ORDER DATED 10.02.2016 OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-15 CHENNAI. ITA NO.1576/2016 :- 2 -: 2. REVENUE HAS FILED THIS APPEAL WITH A DELAY OF TEN D AYS. PETITION FOR CONDONATION HAS BEEN FILED. FAIR REAS ONS HAVE BEEN SHOWN. DELAY IS CONDONED. APPEAL IS ADMITTED. 3. GRIEVANCE RAISED BY THE REVENUE IS ON THE DIRECTIO N OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) TO EXCLUDE EXCISE DUTY SALES TAX AND SCRAP SALES FROM TOTAL TURNOVER WHIL E CALCULATING DEDUCTION CLAIMED BY THE ASSESSEE U/S.80HHC OF THE INCOME TAX ACT 1961 (HEREIN REFERRED AS THE ACT). 4. LD. ASSESSING OFFICER HAD ADDED EXCISE DUTY OF C10 76 34 763/- SALES TAX C2 96 94 516/- AND SCRA P SALES C24 48 474/- IN THE TOTAL TURNOVER OF THE ASSESSEE WHILE COMPUTING DEDUCTION U/S.80HHC OF THE ACT. 5. WHEN ASSESSEE MOVED IN APPEAL BEFORE LD. COMMISSION ER OF INCOME TAX (APPEALS) THE LD. COMMISSIONER OF INCOM E TAX (APPEALS) RELYING ON THE JUDGMENTS OF APEX COURT IN THE CASE OF CIT VS. LASKHMI MACHINE WORKS 290 ITR 667 AND CIT VS. PUNJAB STAIN LESS STEEL INDUSTRIES 364 ITR 144 DIRECTED THE LD. ASSESSING OFFICER TO EXCLUDE THESE AMOUNTS FROM THE TOTAL TURNOVER WHILE COMPUTI NG THE DEDUCTION U/S.80HHC OF THE ACT. ITA NO.1576/2016 :- 3 -: 6. NOW BEFORE US LD. DEPARTMENTAL REPRESENTATIVE SUB MITTED THAT LD. COMMISSIONER OF INCOME TAX (APPEALS) HAD R ELIED ON A DECISION OF CO-ORDINATE BENCH IN THE CASE OF M/S. S UNDARAM CLAYTON LTD FOR GIVING RELIEF TO THE ASSESSEE. AS PER LD. DEPARTMENTAL REPRESENTATIVE THE DECISION HAD NOT REACHED FINALI TY. 7. PER CONTRA THE LD. AUTHORISED REPRESENTATIVE STRO NGLY SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 8. WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND PERUSE D THE ORDERS OF THE AUTHORITIES BELOW. IN SO FAR AS EXCI SE DUTY AND SALES TAX ARE CONCERN THE HONBLE APEX COURT IN THE CASE OF LASKHMI MACHINE WORKS (SUPRA) CLEARLY HELD THAT EXCISE DUTY AND SALES TAX WERE TO BE EXCLUDED FROM TOTAL TURNOVER WHEN WORKING OUT THE DEDUCTION AVAILABLE TO THE ASSESSEE U/S.80HHC OF THE ACT. IN SO FOR AS SCRAP SALES THEIR LORDSHIP IN THE CASE OF PUNJAB STAINLESS STEEL INDUSTRIES (SUPRA) HELD THAT WHERE AN ASSESSEE WAS NOT DEALING IN SCRA P BUT SCRAP WAS ONLY WHAT WAS LEFT FROM THE PROCESS OF MANUFACT URING THEN PROCEEDS OF SALE OF SUCH SCRAP SHOULD NOT BE CONSID ERED AS PART OF THE TURNOVER. WE ARE OF THE OPINION THAT LD. COMMISSIO NER OF INCOME TAX (APPEALS) HAD RIGHTLY FOLLOWED THE JUDGMENT OF APEX COURT IN THE CASES ITA NO.1576/2016 :- 4 -: OF LASKHMI MACHINE WORKS (SUPRA) AND PUNJAB STAINLESS STEEL INDUSTRIES(SUPRA) FOR GIVING RELIEF TO THE ASSESSEE. WE DO NOT FIND ANY REASON TO INTERFERE. 9. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMISS ED. . ORDER PRONOUNCED ON FRIDAY THE 21ST DAY OF OC TOBER 2016 AT CHENNAI. SD/- SD/- ( . . . ' ) (N.R.S. GANESAN) / JUDICIAL MEMBER ( ! . '#'$ ) (ABRAHAM P. GEORGE) % / ACCOUNTANT MEMBER #$ / CHENNAI %& / DATED:21ST OCTOBER 2016 KV &' ()*) / COPY TO: 1 . / APPELLANT 3. + ' / CIT(A) 5. )-. / / DR 2. / RESPONDENT 4. + / CIT 6. .01 / GF