M/s Shree Triveni Foods, Parwanoo v. ITO, Parwanoo

ITA 58/CHANDI/2011 | 2004-2005
Pronouncement Date: 28-02-2011 | Result: Allowed

Appeal Details

RSA Number 5821514 RSA 2011
Assessee PAN AANFS4378J
Bench Chandigarh
Appeal Number ITA 58/CHANDI/2011
Duration Of Justice 1 month(s) 8 day(s)
Appellant M/s Shree Triveni Foods, Parwanoo
Respondent ITO, Parwanoo
Appeal Type Income Tax Appeal
Pronouncement Date 28-02-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 28-02-2011
Assessment Year 2004-2005
Appeal Filed On 20-01-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES B CHANDIGARH BEFORE SHRI D.K.SRIVASTAVA ACCOUNTANT MEMBER AND MS SUSHMA CHOWLA JUDICIAL MEMBER ITA NO. 58/CHD/2011 ASSESSMENT YEAR: 2004-05 SHREE TRIVENI FOODS VS THE ITO PARWANOO PARWANOO PAN NO. AANFS4378J (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SURINDRA BABBAR RESPONDENT BY: SMT SARITA KUMARI ORDER PER SUSHMA CHOWLA JM THE APPEAL BY THE ASSESSEE IS AGAINST THE ORDER OF CIT(A) SHIMLA DATED 9.11.2010 RELATING TO ASSESSMENT YEAR 2004-05 AGAINST THE ORDER PASSED UNDER SECTION 154 OF THE I.T. ACT. 2. THE ISSUE RAISED IN THE PRESENT IS AGAINST THE O RDER PASSED U/S 154 OF THE ACT BY HOLDING THE YEAR UNDER APPEAL TO BE 6 TH YEAR OF CLAIM OF DEDUCTION U/S 80IA OF THE ACT AND CONSEQUENTLY REDU CING THE DEDUCTION CLAIMED U/S 80IA OF THE ACT. 3. THE LD. AR FOR THE ASSESSEE POINTED OUT THAT THE ORIGINAL ASSESSMENT IN THE CASE WAS COMPLETED VIDE ORDER PASSED U/S 143 (3) OF THE ACT DATED 20.12.2006. THE CLAIM OF THE ASSESSEE IN RESPECT O F DEDUCTION U/S 80 IB 2 OF THE ACT WAS NOT ALLOWED BY THE ASSESSING OFFICER FOLLOWING THE ORDER PASSED IN THE EARLIER YEARS. THE TRIBUNAL IN ASSES SEES CASE ALLOWED THE CLAIM OF DEDUCTION U/S 80 IB OF THE ACT VIDE CONSOL IDATED ORDER PASSED IN ITA NOS. 1057 TO 1061/CHD/2007 DATED 30.1.2009. TH E GRIEVANCE OF THE ASSESSEE IS THAT CONSEQUENT THERETO AN ORDER U/S 15 4 OF THE INCOME TAX ACT HAD BEEN PASSED ON 8.11.2009 HOLDING THE YEAR UNDER CONSIDERATION TO BE THE 6 TH YEAR OF DEDUCTION. THE LD. AR POINTED OUT THAT T HE ISSUE BEING DEBATABLE COULD NOT BE CONSIDERED VIDE ORDER PASSED UNDER SECTION 154 OF THE ACT. THE LD. DR PLACED RELIANCE ON THE ORDER O F CIT(A). 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORDS. THE ISSUE OF GRANT OF DEDUCTION U/S 80 IB OF THE ACT WA S ELABORATELY CONSIDERED BY THE TRIBUNAL (SUPRA) VIDE ITS ORDER D ATED 30.1.2009 AND THE QUESTION OF PURCHASE OF PLANT AND MACHINERY AND STA RT OF COMMERCIAL PRODUCTION HAD BEEN ELABORATELY CONSIDERED BY THE T RIBUNAL AND THEREAFTER THE OBSERVATION IN CONNECTION WITH THE ALLOWANCE TH E SAID DEDUCTION. THE ASSESSING OFFICER ALLOWED THE APPEAL EFFECT TO THE ORDER OF THE TRIBUNAL VIDE ORDER DATED 20.3.2009 AND DETERMINED THE INCOM E AT NIL. PURSUANT THERETO ANOTHER ORDER U/S 154 OF THE ACT WAS PASSED ON 18.11.2009 WHICH IS THE SUBJECT MATTER OF APPEAL BEFORE US. VIDE THE SUBSEQUENT ORDER U/S 154 OF THE ACT THE ASSESSING OFFICER WAS OF THE VI EW THAT WHERE THE ASSESSEE HAD COMMENCED PRODUCTION DURING ASSESSMENT YEAR 1999-2000 THE PRESENT YEAR BEING 6 TH YEAR OF PRODUCTION THE ELIGIBLE DEDUCTION U/S 80 IB WAS TO BE ALLOWED ONLY TO THE EXTENT OF 25%. THE EXERCISE OF POWER U/S 154 OF THE INCOME TAX ACT IS RESTRICTED TO ALL SUCH MISTAKES WHICH ARE APPARENT FROM THE PERUSAL OF RECORDS AND IN ORDER T O AMEND THE SAME POWER IS WITH THE INCOME TAX AUTHORITY TO PASS CONS EQUENT ORDER. HOWEVER IN CASE OF DEBATABLE ISSUE NO SUCH POWER IS VESTED WITH THE 3 INCOME TAX AUTHORITIES TO AMEND THE ORDER U/S 154 O F THE ACT. FROM THE PERUSAL OF RECORD WE FIND THE ASSESSING OFFICER TO HAVE EXERCISED HIS POWERS IN RESPECT OF A DEBATABLE ISSUE WHICH IS NOT A MISTAKE APPARENT FROM RECORD AND HENCE NOT AMENABLE TO POWER OF RECT IFICATION U/S 154 OF THE ACT. CONSEQUENTLY WE SET ASIDE THE ORDER PAS SED BY THE ASSESSING OFFICER AND ALLOW THE ISSUE RAISED BY THE ASSESSEE. 5. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 28 TH DAY OF FEBRUARY 2011. SD/- SD/- (D.K.SRIVASTAVA) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 28 TH FEBRUARY 2011 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR