Income Tax Appellate Tribunal - Pune
Assistant Commisisoner Of ... vs B.T. Patil & Sons Belgaum Construction ... on 9 August, 2017
आयकर अपीऱीय अधिकरण पण
ु े न्यायपीठ "ए" पण
ु े में
IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCH "A", PUNE
सुश्री सुषमा चावऱा, न्याययक सदस्य एवं, श्री डी. करुणाकरा राव, ऱेखा सदस्य के समक्ष
BEFORE MS. SUSHMA CHOWLA, JM AND SHRI D. KARUNAKARA RAO, AM
आयकर अपीऱ सं. / ITA No.1194/PUN/2015
यििाारण वषा / Assessment Year : 2012-13
The Asst. Commissioner of Income Tax,
Circle - 2, Kolhapur .... अऩीऱाथी/Appellant
Vs.
B.T. Patil & Sons Belgaum Construction Pvt. Ltd.,
Reg. Office No.301, C.S. No.2141,
Sidhivinayak Classic,
E-Ward, Tarabai Park,
Kolhapur . .... प्रत्यथी / Respondent
PAN: AAACB7343N
अऩीऱाथी की ओर से / Appellant by : Shri Achal Sharma, Addl.CIT
प्रत्यथी की ओर से / Respondent by : Shri Ulhas Kini
सन
ु वाई की तारीख / घोषणा की तारीख /
Date of Hearing : 03.08.2017 Date of Pronouncement: 09.08.2017
आदे श / ORDER
PER SUSHMA CHOWLA, JM:
The appeal filed by the Revenue is against the order of CIT(A)-1 & 2, Kolhapur, dated 16.06.2015 relating to assessment year 2012-13 against order passed under section 143(3) of the Income-tax Act, 1961 (in short 'the Act').
2. The Revenue has raised the following grounds of appeal:-
1. On the facts and in the circumstances of the case, the Ld. CIT(Appeals) erred in allowing claim of deduction u/s. 80IA(4) of Rs.4,81,83,764/-
without appreciating the fact that the assessee is not a developer but only a works contractor.
2ITA No.1194/PUN/2015
B.T. Patil & Sons Belgaum Construction Pvt. Ltd.
2. The appellant prays that the order of the Ld. CIT(A), Kolhapur be vacated and that order of the Assessing Officer be restored.
3. The learned Authorized Representative for the assessee at the outset pointed out that the issue raised in the present appeal is squarely covered by the order of Tribunal in assessee's own case.
4. The learned Departmental Representative for the Revenue placed reliance on the order of Assessing Officer.
5. The issue arising in the present appeal filed by the Revenue is against allowability of claim of deduction under section 80IA(4) of the Act.
6. Briefly, in the facts of the case, the assessee was engaged in execution of civil engineering contracts. For the year under consideration, the assessee had furnished return of income declaring total income of Rs.6,54,04,290/-, after claiming deduction under Chapter VIA at Rs.4,85,36,764/-. The assessee was engaged in the business of developing infrastructural facilities i.e. construction of canals / tunnels and also manufacturing, supply & erection for crest gates, cranes & Hoists for different irrigation / water supply / Hydro power projects, awarded on contract in pursuance to agreement entered into with Government of Maharashtra or its agencies. The assessee had claimed the deduction under section 80IA(4) of the Act in respect of profits earned from the development of infrastructural facilities. The Assessing Officer was of the view that the assessee was civil contractor engaged in the activities of executing contracts for civil work. The Assessing Officer denied the claim of assessee holding the assessee not a developer of infrastructural project but merely executing works contracts and hence, not eligible for deduction under section 80IA(4) of the Act. The Assessing Officer has referred to various case laws on 3 ITA No.1194/PUN/2015 B.T. Patil & Sons Belgaum Construction Pvt. Ltd.
the issue including the decision in the case of assessee itself in earlier years and has pointed out vide para 6.5 that the Revenue is in appeal before the Hon'ble High Court on this issue and hence, the denial of claim under section 80IA(4) of the Act at Rs.4.82 crores.
7. The CIT(A) allowed the claim of assessee in view of the decision of the Tribunal in earlier years including the decision of CIT(A) in assessment year 2011-12.
8. The Revenue is in appeal against the order of CIT(A).
9. We have heard the rival contentions and perused the record. The issue arising in the present appeal is against eligibility of claim of deduction under section 80IA(4) of the Act has been adjudicated by the Tribunal in assessee's own case in assessment years 2000-01 and 2001-02. It may be pointed out that initially the Pune Bench of Tribunal had rejected the claim of assessee. The matter was carried before the Hon'ble Bombay High Court, which in ITA No.1307/2011 and in ITA No.1640/2011 had remitted the issue back to the Tribunal with direction to consider the same after taking into consideration the decision of Hon'ble High Court in the case of CIT Vs. M/s. ABG Heavy Industries Ltd. (2010) 322 ITR 323 (Bom). In the second round of litigation, the Tribunal allowed the claim of assessee distinguishing the ratio laid down by the jurisdictional High Court. The Tribunal held the assessee to be eligible to claim the deduction under section 80IA(4) of the Act. The said proposition laid down by the Tribunal has been applied by the Pune Bench of Tribunal in assessee's own case in assessment year 2011-12 in ITA No.2305/PN/2014, vide order dated 25.11.2016 and following the same parity of reasoning as in earlier years, held the assessee to be entitled to claim the deduction under section 80IA(4) of 4 ITA No.1194/PUN/2015 B.T. Patil & Sons Belgaum Construction Pvt. Ltd.
the Act vide paras 5 to 7. The said order of the Tribunal is being referred to but the findings are not being reproduced for the sake of brevity. The learned Departmental Representative for the Revenue has failed to controvert the findings of the Tribunal in earlier years and has also failed to bring on record any decision of the jurisdictional High Court reversing the findings of the Tribunal. In view thereof, we find no merit in the grounds of appeal raised by the Revenue and the same are dismissed.
10. In the result, the appeal of Revenue is dismissed.
Order pronounced on this 9th day of August, 2017.
Sd/- Sd/-
(D.KARUNAKARA RAO) (SUSHMA CHOWLA)
ऱेखा सदस्य / ACCOUNTANT MEMBER न्याययक सदस्य / JUDICIAL MEMBER
ऩुणे / Pune; ददनाांक Dated : 9th August, 2017.
GCVSR
आदे श की प्रयिलऱपप अग्रेपषि/Copy of the Order is forwarded to :
1. अऩीऱाथी / The Appellant;
2. प्रत्यथी / The Respondent;
3. आयकर आयक् ु त(अऩीऱ) / The CIT(A)-1&2, Kolhapur;
4. आयकर आयुक्त / The CIT-I/II, Kolhapur / CIT (Central), Pune;
5. ववभागीय प्रतततनधध, आयकर अऩीऱीय अधधकरण, ऩुणे "ए" / DR 'A', ITAT, Pune;
6. गार्ड पाईऱ / Guard file.
ु ार/ BY ORDER, आदे शािस सत्यावऩत प्रतत //True Copy// वररष्ठ तनजी सधिव / Sr. Private Secretary आयकर अऩीऱीय अधधकरण ,ऩण ु े / ITAT, Pune