ACIT, Alwar v. M/S DEEPAK VEGPRO P LTD., Alwar

ITA 740/JPR/2012 | 2006-2007
Pronouncement Date: 28-11-2014 | Result: Dismissed

Appeal Details

RSA Number 74023114 RSA 2012
Assessee PAN AAACD6118P
Bench Jaipur
Appeal Number ITA 740/JPR/2012
Duration Of Justice 2 year(s) 2 month(s) 27 day(s)
Appellant ACIT, Alwar
Respondent M/S DEEPAK VEGPRO P LTD., Alwar
Appeal Type Income Tax Appeal
Pronouncement Date 28-11-2014
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 28-11-2014
Assessment Year 2006-2007
Appeal Filed On 31-08-2012
Judgment Text
IN THE INCOME TAX APPELALTE TRIBUNAL: JAIPUR BENCH JAIPUR BEFORE SHRI SHAILENDRA KUMAR YADAV JUDICIAL MEMBER AND SHRI B. C. MEENA ACCOUNTANT MEMBER. ITA.NO.740/JP/2012 (ASSESSMENT YEAR:2006-07) ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-1 ALWAR APPELLA NT VS. M/S DEEPAK VEGPRO PVT. LTD. OLD INDUSTRIAL AREA ALWAR RESPONDENT PAN: AAACD6118P /BY APPELLANT : SHRI RAJESH OJHA D.R. /BY RESPONDENT : SHRI P. C. PARWAL A.R. /DATE OF HEARING : 25.11.2014 /DATE OF PRONOUNCEMENT :28.11.2014 ORDER I.T.A. NO. 740/JP/2012 A.Y. 2006-2007 (ACIT VS. M/S. DEEPAK VEGPRO P. LTD.) PAGE 2 PER SHAILENDRA KUMAR YADAV J.M: THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) ALWA R DATED 27.06.2012 FOR A.Y.2006-07 ON THE FOLLOWING GROUND: 1. THAT THE LD. COMMISSIONER OF INCOME TAX (A) HA S ERRED IN LAW AS WELL AS ON THE FACTS AND CIRCUMSTANCES OF THE CASE IN DIRECTING THE ASSESSING OFFICER TO REWORK T HE DEDUCTION U/S 80IB WITHOUT DEDUCTING THE PROFIT DERIVED FROM DIRECT TRADING OF RS.34 33 050/- AND MODIFY THE TOTAL INCOME ACCORDINGLY WHICH IS ABSOLU TELY IN CONTRAVENTION TO THE DECISION OF HONBLE ITAT AS HELD IN APPELLATE ORDERS OF A.Y. 2003-04 AND 2005-06. 2. THE ONLY ISSUE BEFORE US IS WITH REGARDS TO DEDU CTION U/S 80IB. IN THIS CASE ASSESSMENT FOR A.Y. 06-07 WAS P ASSED VIDE ORDER DATED 31.12.2008 WHEREIN ASSESSING OFFICER H AD DISALLOWED CLAIM OF DEDUCTION U/S. 80IB AMOUNTING T O RS.99 17 053/- AND THIS AMOUNT WAS ADDED TO THE TOT AL INCOME OF ASSESSEE. ASSESSING OFFICER OBSERVED IN PARA -1 1 OF THE ASSESSMENT ORDER FOR A.Y. 2006-07 AS UNDER: IN RESPONSE TO THE ABOVE QUERY THE ASSESSEE HAS FURNISHED DETAILS OF DIRECT TRADING AND PROFIT EARN ED THEREON AND ALSO TRIED TO JUSITFY ITS ELIGIBILITY FOR CLAIM ING DEDUCTION U/S. 80IB. SO FAR AS WORKING OF INCOME FROM DIRECT TRADING IS CONCERNED THE ASSESSEE HAS FURNISHED NECESSARY D ETAILS AND THE OTHER ASPECT OF ELIGIBILITY FOR CLAIMING DE DUCTION U/S.80IB IT IS FOUND THAT THERE IS NO CHANGE IN THE POSITION AS COMPARED TO AY 2005-06. IN A.Y. 2005-06 THE ISS UE WAS DISCUSSED IN DETAIL AND AFTER CONSIDERING ENTIRE MA TERIAL THE AO REJECTED THE ASSESSEES CLAIM OF DEDUCTION U/S.8 0IB. IN THE CURRENT YEAR ALSO POSITION REMAINS SAME THEREF ORE I HAVE COME TO THE CONCLUSION THAT THE ASSESSEE IS NO T ELIGIBLE FOR CLAIMING DEDUCTION U/S.80IB DUE TO HAVING INVES TMENT IN PLANT AND MACHINERY MORE THAN THE PRESCRIBED LIM IT. I.T.A. NO. 740/JP/2012 A.Y. 2006-2007 (ACIT VS. M/S. DEEPAK VEGPRO P. LTD.) PAGE 3 ACCORDINGLY THE ASSESSEES CLAIM OF DEDUCTION U/S.8 0IB AMOUNTING TO RS.99 17 053/- IS DISALLOWED AND INCOM E IS ENHANCED TO THAT EXTENT. 2.1 CIT(A) OBSERVED THAT IN A.Y. 2005-06 ASSESSING OFFICER IN ASSESSMENT ORDER DISCUSSED THE ISSUE OF DEDUCTION U /S.80IB ON DIRECT TRADING IN PARA 8 OF ITS ORDER AND HAS GI VEN SPECIFIC FINDINGS AS UNDER: THE TOTAL PROFIT IN THE TRADING WILL THUS WILL BE RS.2110218/- + RS.566733/- I.E. RS.2676951/-. THIS AMOUNT REQUIRES TO BE EXCLUDED FOR CALCULATION OF DEDUCTION U/S. 80IB OF THE IT ACT IF BASED ON THE F INDING OF THE LAST YEAR. BUT IN MY ORDER I AM OTHERWISE H OLDING IN PARA-11 OF THIS ORDER THAT ASSESSEE IS NOT ENTIT LED FOR ANY DEDUCTION U/S.80IB OF THE IT ACT. IN VIEW OF ABOVE CIT(A) HELD THAT SINCE THERE WAS NO SPECIFIC FINDING OF ASSESSING OFFICER TO EXCLUDE PROFIT FROM THAT TRADING WHILE WORKING OUT DEDUCTION U/S. 80IB IN ASSESSMENT ORDER U/S.143(3) FOR A.Y. 2006-07 AND SINCE CIT(A) HAS HE LD THAT THE DEDUCTION IS ALLOWED U/S.80IB AS CLAIMED BY ASSESSE E WITH THE DIRECTION OF THE HONBLE ITAT DECISION ASSESSING O FFICER WAS NOT JUSTIFIED IN EXCLUDING THE PROFIT DERIVED FROM DIRECT TRADING OF RS.34 33 050/- IN ORDER PASSED U/S. 143(3)/154/2 50 OF THE IT ACT DATED 30.03.2011 WHILE GIVING EFFECT TO THE ORDER DATED 10.02.2011 OF CIT(A) ALWAR. ACCORDINGLY ASSESSIN G OFFICER WAS RIGHTLY DIRECTED TO REWORK THE DEDUCTION U/S. 8 0IB WITHOUT DEDUCTING PROFIT DERIVED FROM DIRECT TRADING OF RS. 34 33 050/- AND MODIFY THE TOTAL INCOME ACCORDINGLY. CIT(A) WA S JUSTIFIED IN GIVING ABOVE DIRECTIONS BECAUSE ASSESSING OFFICE R WAS NOT JUSTIFIED IN ATTEMPTING TO EXCLUDE PROFIT DERIVED F ROM DIRECT I.T.A. NO. 740/JP/2012 A.Y. 2006-2007 (ACIT VS. M/S. DEEPAK VEGPRO P. LTD.) PAGE 4 TRADING OF RS. 34 33 050/- IN ORDER PASSED U/S. 143 (3) / 154 / 250 OF THE INCOME TAX ACT DATED 30.03.2011 WHILE GI VING EFFECT TO THE ORDER OF CIT(A) DATED 10.02.2011. SAME IS U PHELD. 3. AS A RESULT APPEAL FILED BY THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT ON THIS THE 28 TH DAY OF NOVEMBER 2014. SD/- SD/- (B. C. MEENA) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBE R TRUE COPY S.K.SINHA COPY FORWARDED TO: 1. THE APPELLANT- ACIT CIRCLE-1 ALWAR. 2. THE RESPONDENT- M/S DEEPAK VEGPRO PVT. LTD. 3. THE CIT 4. CIT(APPEALS) 5. THE DR 6. GUARD FILE (ITA NO. 740/JP/2012) BY ORDER A.R. JAIPUR.