Abbee Consumables & Peripherals Sshope Ltd,, Pune v. Deputy Commissioner of Income tax,, Pune

ITA 454/PUN/2017 | 2010-2011
Pronouncement Date: 20-11-2019 | Result: Allowed

Appeal Details

RSA Number 45424514 RSA 2017
Assessee PAN AAECA9728L
Bench Pune
Appeal Number ITA 454/PUN/2017
Duration Of Justice 2 year(s) 8 month(s) 28 day(s)
Appellant Abbee Consumables & Peripherals Sshope Ltd,, Pune
Respondent Deputy Commissioner of Income tax,, Pune
Appeal Type Income Tax Appeal
Pronouncement Date 20-11-2019
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 20-11-2019
Date Of Final Hearing 06-11-2019
Next Hearing Date 06-11-2019
First Hearing Date 16-01-2019
Assessment Year 2010-2011
Appeal Filed On 22-02-2017
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH PUNE BEFORE SHRI D. KARUNAKARA RAO ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI J UDICIAL MEMBER . / ITA NO . 454 /PUN/201 7 / ASSESSMENT YEAR : 20 1 0 - 1 1 ABBEE CONSUMABLES & PERIPHERALS SSHOPE LTD. KUMAR GARIMA K 202 SECOND FLOOR TADIWALA ROAD PUNE 411001 PAN : AA ECA9728L ....... / APPELLANT / V/S. THE DY. COMMISSIONER OF INCOME TAX CIRCLE 1(1) PUNE / RESPONDENT ASSESSEE BY : SHRI KISHORE B PHADKE REVENUE BY : SHRI PANKAJ GARG / DATE OF HEARING : 0 7 - 1 1 - 2019 / DATE OF PRONOUNCEMENT : 20 - 1 1 - 2019 / ORDER PER S.S. VISWANETHRA RAVI JM : THIS APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 16 - 11 - 2016 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 1 PUNE [CIT(A)] FOR ASSESSMENT YEAR 20 1 0 - 1 1 . 2 ITA NO. 454 /PUN/201 7 A.Y. 201 0 - 1 1 2. THE ASSESSEE RAISED AS MANY AS EFFECTIVE GROUNDS NO.1 TO 5 CHALLENGING THE ACTION OF THE CIT(A) IN CONFIRMING THE VIEW TAKEN BY THE ASSESSING OFFICER IN RESPECT OF DENIAL OF DEDUCTION U/S 80IC OF THE INCOME - TAX ACT 1961 (HEREINAFTER REFERRED TO AS THE ACT) AND OTHER DISALLOWANCES. 3. SHRI KISHORE B PHADKE THE LD. AR PLACED ON RECORD THE W RITTEN SUBMISSIONS AND MADE A PRAYER IN REMANDING THE MATTER TO THE FILE OF ASSESSING OFFICER FOR HIS FRESH VERIFICATION. 4. SHRI PANKAJ GARG LD. DR REPORTED NO OBJECTION . T HEREFORE WE PROCEED TO HEAR ALL GROUNDS NO.1 TO 5 TOGETHER WITH THE CONSENT OF BOTH PARTIES. 5 . HEARD BOTH PARTIES AND PERUSED THE MATERIALS AVAILABLE ON RECORD. THE ASSESSING OFFICER COMPLETED THE ASSESSMENT U/S 144 OF THE ACT WHEREBY HE DENIED DEDUCTION U/S 80IC OF THE ACT ALONG WITH DISALLOWANCES ON ACCOUNT OF PRIOR PERIOD EXPE NDITURE U/S 40(A)(IA) OF THE ACT ADVERTISEMENT AND CONSULTANCY CHARGES. WE FIND THAT THE ASSESSEE IS A COMPANY ENGAGED IN THE BUSINESS OF REFILLING AND TRADING IN VARIOUS TYPES OF PRINTER CARTRIDGES AND ITS COMPONENTS. IN THE ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER HELD REFILLING OF CARTRIDGES IS NOT A MANUFACTURING ACTIVITY AND DENIED THE CLAIM OF ASSESSEE MADE U/S 80IC OF THE ACT. THE CIT(A) HELD THE REFILLING OF CARTRIDGES IS A MANUFACTURING ACTIVITY BUT HOWEVER DENIED THE DEDUCTION U/S 80IC OF THE ACT ONLY ON THE BASIS OF FOR NOT SUBMITTING SEPARATE (SPLIT) PROFIT AND LOSS ACCOUNT. THE ONLY 3 ITA NO. 454 /PUN/201 7 A.Y. 201 0 - 1 1 CONTENTION OF SHRI KISHORE B PHADKE LD. AR IS THAT THE ASSESSING OFFICER COMPLETED THE ASSESSMENT TO THE BEST OF HIS JUDGMENT AND NO OPPORTUNITY WAS AVA ILABLE TO THE ASSESSEE BEFORE THE ASSESSING OFFICER AND IN THE FIRST APPELLATE PROCEEDINGS AS WELL AND PRAYED FOR REMAND THE MATTER TO THE FILE OF ASSESSING OFFICER FOR HIS FRESH VERIFICATION IN TERMS OF ASSESSEE SHALL SUB STANTIATE SPLIT PROFIT AND LOSS AC COUNT AND THE ADVERTISEMENT EXPENSES ETC. AS DISCUSSED ABOVE THERE WAS NO PROPER OPPORTUNITY FOR THE ASSESSEE BEFORE THE ASSESSING OFFICER AS WELL AS BEFORE THE CIT(A) AND IN VIEW OF THE FINDING OF CIT(A) THAT THE MAIN ACTIVITY OF THE ASSESSEE IS A MANU FACTURING ACTIVITY INVOLVING REFILLING OF CARTRIDGES WITH INK THEREFORE IN OUR OPINION THE ASSESSEE IS ENTITLED TO GET CLAIM U/S 80IC OF THE ACT IN THE INTEREST OF JUSTICE AND TAKING INTO CONSIDERATION THE FACTS AND CIRCUMSTANCES OF THE CASE WE DEEM I T FIT TO REMAND THE MATTER TO THE FILE OF ASSESSING OFFICER FOR FRESH VERIFICATION IN TERMS OF THE OBSERVATIONS MADE HEREINABOVE. THUS THE GROUNDS NO.1 TO 5 ARE ALLOWED FOR STATISTICAL PURPOSES. 6 . IN THE RESULT THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON 2 0 T H NOVEM BER 2019. SD/ - SD/ - ( D.KARUNAKARA RAO ) (S.S. VISWANETHRA RAVI) ACCOUNTANT MEMBER JUDICIAL MEMBER / PUNE; / DATED : 2 0 T H NOVEMB ER 2019 GCVSR 4 ITA NO. 454 /PUN/201 7 A.Y. 201 0 - 1 1 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 1 PUNE 4. / THE PR. CIT - 1 PUNE 5. / DR ITAT B BENCH PUNE. 6. / GUARD FILE. // // TRUE COPY// / BY ORDER / SR. PRIVATE SECRETARY / ITAT PUNE