ACIT, Hyderabad v. M/s The A.P.Paper Mills Ltd, Secunderabad

ITA 312/HYD/2009 | 2005-2006
Pronouncement Date: 31-03-2010 | Result: Partly Allowed

Appeal Details

RSA Number 31222514 RSA 2009
Assessee PAN AAACT8849D
Bench Hyderabad
Appeal Number ITA 312/HYD/2009
Duration Of Justice 1 year(s) 27 day(s)
Appellant ACIT, Hyderabad
Respondent M/s The A.P.Paper Mills Ltd, Secunderabad
Appeal Type Income Tax Appeal
Pronouncement Date 31-03-2010
Appeal Filed By Department
Order Result Partly Allowed
Bench Allotted B
Tribunal Order Date 31-03-2010
Date Of Final Hearing 22-03-2010
Next Hearing Date 22-03-2010
Assessment Year 2005-2006
Appeal Filed On 04-03-2009
Judgment Text
1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B HYDERABAD BEFORE SHRIG.C.GUPTA VICE PRESIDENT AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA NOS. 311 TO 313/HYD/09 : ASSTT. YEARS 200 4-05 TO 2006-07 THE ACIT CIRCLE 3(3) THE A.P .PAPER MILLS LTD. HYDERABAD. SECUN DERABAD. (AAACT8849D) (APPELLANT) (RESPONDENT) C.O. NOS. 36 TO 38/HYD/09 (IN ITA NOS.311 TO 313/HYD/09 THE A.P.PAPER MILLS LTD. VS . SECUNDERABAD. (APPELLANT) (AAACT8849D) THE ACIT CIRCLE 3(3) HYDERABAD. (RESPONDENT) DEPARTMENT BY : SMT. V ASUNDHARA SINHA RESPONDENT BY : SHRI S.RA MA RAO ORDER PER CHANDRA POOJARI ACCOUNTANT MEMBER: THESE APPEALS BY THE REVENUE AND CROSS OBJECTIONS FILED BY THE ASSESSEE ARE DIRECTED AGAINST DIFFERENT ORDERS OF CIT( A)-III HYDERABAD DATED 30.3.2009 PERTAINS ASSESSMENT YEARS 2004-0 5 TO 2006-07. SINCE COMMON ISSUES ARE INVOLVED IN THESE APPEA LS THESE ARE CLUBBED HEARD AND DISPOSED BY THIS CONSOLIDATED ORD ER FOR THE SAKE OF CONVENIENCE. 2 2. FIRST LET US DEALT WITH APPEALS FILED BY THE REVEN UE. IN ALL THESE APPEALS THE COMMON ISSUE IS RELATING TO ALLOWABILI TY OF DEDUCTION U/S 80 IA ON CAPTIVE CONSUMPTION OF POWER GE NERATED BY THE ASSESSEE. 3. AT THE TIME OF HEARING BOTH THE PARTIES FAIRLY CONCEDED THAT THIS ISSUE IS SQUARELY COVERED BY THE ORDER OF THE TRIBUN AL MUMBAI I BENCH IN THE CASE OF WEST COAST PAPER MILLS LTD. VS. ACIT (103 ITD 19) (MUM) WHEREIN IT WAS HELD THAT THE CLAIM FOR DEDU CTION U/S 80IA SHOULD BE GRANTED WHERE THERE IS A CAPTIVE CONSUMPTION O F POWER GENERATED BY THE ASSESSEE AND TRANSFER PRICE HAS TO BE WOR KED OUT ON THE BASIS OF AVERAGE PRICE PAID BY THE ASSESSEE DURING THE YEAR TO THE STATE ELECTRICITY BOARD MINUS EXTRANEOUS CHARGES SUCH AS ELECT RICITY DUTY ETC. HOWEVER IN OUR OPINION DEDUCTION U/S 8 0IA UNDER THE INCOME TAX ACT HAS TO BE COMPUTED AFTER DEDUCTION OF NO TIONAL BROUGHT FORWARD LOSSES AND DEPRECIATION OF ELIGIBLE BU SINESS EVEN THOUGH THEY HAVE BEEN ALLOWED TO BE SET OFF AGAINST THE OTHER INCOME IN EARLIER YEARS IN VIEW OF THE SPECIFIC PROVISIONS OF SE CTION 80IA(5) AS LAID DOWN BY THE SPECIAL BENCH AHMADABAD IN THE CASE O F ACIT VS. GOLD MINES SHARES & FINANCE (P) LTD. (113 ITD 209). HE NCE WE DIRECT THE ASSESSING OFFICER TO COMPUTE THE DEDUCTION U/S 8 0IA AS LAID DOWN BY PROVISIONS OF THE INCOME TAX ACT 1961. 4. THE NEXT GROUND OF APPEAL IN ITA NO.311/HYD/20 09 IS WITH REGARD TO GRANTING OF DEDUCTION TOWARDS PREPAYMENT PR EMIUM PAID TO IDBI & ICICI BANK AS REVENUE EXPENDITURE. 5. WE HAVE HEARD BOTH THE PARTIES ON THIS ISSUE. A FTER CONSIDERING THE ENTIRE FACTS WE ARE OF THE OPINION THA T THIS ISSUE IS 3 COVERED BY THE ORDER OF THE TRIBUNAL IN THE ASSESSEES OW N CASE IN THE ASSESSMENT YEAR 2002-03 IN ITA NO.454/HYD/2006 IN FAVOUR OF THE ASSESSEE. RESPECTFULLY FOLLOWING THE ABOVE DECISION THI S GROUND OF THE REVENUE IS DISMISSED. 6. IN THE RESULT ALL THE APPEALS FILED BY THE REVE NUE STAND PARTLY ALLOWED. 7. NOW COMING TO CROSS OBJECTIONS THERE WAS A DELAY OF 54 DAYS IN FILING THESE COS. THE ASSESSEE FILE PETITION FOR CONDONATION OF DELAY EXPLAINING THE REASON FOR DELAY THEREIN. WE H AVE SATISFIED ABOUT THE REASONS EXPLAINED BY THE ASSESSEE WHICH IS IN BONA FID E IN NATURE AND THE ASSESSEE HAVING REASONABLE CAUSES FOR NOT FILING TH E APPEAL IN TIME. THE DELAY IS CONDONED. THE ASSESSEE RAISED COMMON GROUNDS IN THESE COS WITH REFERENCE TO ALLOWABILITY OF DEPRECIAT ION ON INTANGIBLE ASSETS (GOOD WILL) ACQUIRED DURING THE COURSE OF AMALGAMA TION OF COASTAL PAPERS LTD. DURING THE FINANCIAL YEAR 2000-0 1. 8. WE HAVE HEARD BOTH THE PARTIES ON THIS ISSUE. SI MILAR ISSUE WAS CONSIDERED BY THE TRIBUNAL IN THE ASSESSEE OWN CASE FOR THE ASSESSMENT YEAR 2002-03 IN ITA NO.218/HYD/2006 VIDE ORDE R DATED 4.11.2009 WHEREIN THIS ISSUE WAS DECIDED IN FAVOUR OF THE ASSESSEE. THE SAME VIEW WAS FOLLOWED FOR THE ASSESSMENT YEAR 2003- 04 IN ASSESSEES OWN CASE IN ITA NO.811/HYD/2007 VIDE ORDER DATED 4.11.2009. RESPECTFULLY FOLLOWING THE ABOVE ORDERS OF THE TRIBUNAL WE ALLOW THE GROUND TAKEN BY THE ASSESSEE IN ALL ITS CROSS OB JECTIONS. 4 9. IN THE RESULT ALL THE REVENUE APPEALS ARE PART LY ALLOWED WHEREAS ALL THE CROSS OBJECTIONS FILED BY THE ASSESSEE ARE AL LOWED IN FULL. ORDER PRONOUNCED IN THE COURT ON: 31.3.2010 SD/- SD/- G.C. GUPTA CHANDRA POOJARI VICE PRESIDENT ACCOUNTANT MEMBER DATED THE 31ST MARCH 2010 JMR COPY FORWARDED TO: 1. THE A.P.PAPER MILLS LTD. 501-509 SWAPNALOK COMPL EX 92/93 SD ROAD SECUNDERABAD 2. THE ACIT CIRCLE 3(3) HYDERABAD 3 4 CIT(A)-III HYDERABAD. CIT HYDERABAD 5. THE D.R. ITAT HYDERABAD.