Income Tax Appellate Tribunal - Amritsar
Baljit Kaur, Sangha, Jalandhar vs Department Of Income Tax
IN THE INCOME TAX APPELLATE TRIBUNAL
AMRITSAR BENCH; AMRITSAR.
BEFORE SH. H.L. KARWA, VICE PRESIDENT AND SH. MEHAR
SINGH, ACCOUNTANT MEMBER
I.T.A. No. 423(Asr)/2010
Assessment year:2003-04
PAN :ALNPS8308K
The Asstt. Commr. of Income-tax, Vs. Smt. Baljit Kaur Sangha, Prop.
Range-IV, Jalandhar. Vill. Patti Khas, Vill.
Kalasanghian,
Distt. Jalandhar.
(Appellant) (Respondent)
Department by: Sh. Amrik Chand, DR
Assessee by: Sh. J.S. Bhasin, Adv.
ORDER
Per Mehar Singh, AM,
The present appeal filed by the assessee is directed against the order of the CIT(A), Jalandhar, dated 20.08.2010, passed under section 250(6) of the Income-tax Act, 1961 ( hereinafter referred to in short the 'Act'), for the assessment year 2003-04.
2. The assessee has raised following grounds of appeal:
"1. That the CIT(A), has erred in canceling the assessment order holding that the A.O. has wrongly assumed jurisdiction under section 147 of the Income-tax Act, 1961.
1a. While doing so the Ld. CIT(A) has failed to appreciate the facts that there is tangible material for initiation of reassessment proceedings in view of the decision of ITAT Amritsar Bench, in the case of Shital Fibres Ltd. wherein it has been held that deduction under section 80IB of the Income-tax Act, 1961 is to be computed after netting the deduction allowable under section 80HHC of the Act.
2. It is prayed that the order of the Ld. CIT(A) be set aside and that of the A.O. be restored.
3. That the appellant requests for leave to add or amend or alter the grounds of appeal before the appeal is heard and disposed of.
3. The only effective ground raised by the revenue is that the Ld. CIT(A) erred in canceling the assessment order holding that the AO has wrongly assumed jurisdiction under section 147 of the Act. In this case, the AO, issued notice u/s 148 of the Act, on 5.2.2009 after recording reasons for initiating proceedings u/s 147 of the Act. The reasons which have been reproduced in the appellate order under appeal, briefly are that deduction u/s 80IB was not allowable on various items of income credited to P&L A/c since they were not derived from the industrial undertaking of the assessee. Such incomes were duty drawback, freight outwards, interest on fixed deposit and export incentives totaling Rs.75,19,936/-. The A.O. also noted in the reasons that deduction u/s 80IB had to be allowed after netting the deduction allowed under section 80HHC of the Act. Thus, he held that no deduction u/s 80IB was allowable to the assessee. The AO also noted that the assessee had constructed a factory building during the financial year 2001-02 to 2004- 05, whose cost of construction was declared at Rs.9,71,350/-. The AO had also referred the matter of valuation of cost of construction of the building to the DVO u/s 142A of the Act. The cost of construction in the previous year relevant to assessment year 2003-04 had been worked out at Rs.19,45,400/- by the DVO against Rs.16,88,730/- declared by the assessee. The difference of Rs.2,56,670/- was held by the AO in the reasons recorded to be unexplained investment of the assessee in the factory building.
5. In the result, the appeal filed by the revenue is dismissed.
In the result, the appeal file by the Decision pronounced in the open court on 17th June, 2011.
(H.L. KARWA) (MEHAR SINGH)
VICE PRESIDENT ACCOUNTANT MEMBER
Dated: 17th June, 2011
/SKR/
Copy of the order is forwarded to :
1. The Assessee:
2. The
3. The CIT(A),
4. The CIT,
5. The SR DR
True copy
By Order
(Assistant Registrar)
Income Tax Appellate Tribunal
Amritsar Bench : Amritsar.