Income Tax Appellate Tribunal - Indore
Aartech Solonics Ltd., Bhopal vs Department Of Income Tax
1
IN THE INCOME TAX APPELLATE TRIBUNAL,
INDORE BENCH, INDORE
BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND
SHRI R.C. SHARMA, ACCOUNTANT MEMBER
ITA No. 606/Ind/2010
A.Y. - 2007-08
ACIT 1(2)
Bhopal ::: Appellant
Vs
M/s AartechSolonics Limited
Bhopal
PAN - AACCA - 5369B ::: Respondent
ITA Nos. 294/Ind/2011 & 545/Ind/2012
A.Ys. - 2008-09 & 2009-10
M/s AartechSolonics Limited
Bhopal ::: Appellant
Vs
ACIT 1(2)
Bhopal ::: Respondent
Revenue by Shri K.K. Singh and
Shri R.A. Verma
Assessee by Shri Sumit Nema
Date of Hearing 3.1.2013
Date of Pronouncement 3.1.2013
2
ORDER
PER JOGINDER SINGH, judicial member
The assessee is in appeal for the A.Ys. 2008-09 and 2009-10 whereas the revenue is in appeal for the A.Y. 2007-08 against the respective orders dated 29.7.2011, 24.9.2012 and 23.8.2010, respectively, passed by the learned first appellate authority. In all the appeals, the issue pertains to claim of deduction u/s 80IC of the Act.
2. During hearing, we have heard Shri K.K. Singh, learned CIT DR along with Shri R.A. Verma, learned Senior DR and Shri Sumit Nema, learned counsel for the assessee. At the outset, the learned counsel for the assessee placed a copy of the order from Hon'ble High Court of Madhya Pradesh passed for the A.Y. 2006-07 in the case of the assessee in ITA No. 202 of 2010 by submitting that the Hon'ble Court has restored the issue to the file of the Assessing Officer. It was contended that since the identical issue is involved, therefore, all these appeals may also be restored to the file of the Assessing Officer. The learned CIT DR/Sr. DR has no objection to the same.
3
3. We have perused the order from the Hon'ble High Court. The relevant portion of the order is reproduced hereunder :-
"6. In the light of the aforesaid judgments, if we look into factual aspects in the present matter, we find that as per case of the appellant, it was a hyper technical process of manufacturing which was placed before the CIT (Appeal). The CIT(Appeal) in para 3.3 of the order referred the process for manufacturing but had not evaluated/got examined aforesaid process through a technical person. Before it, when the matter was before the Assessing Officer, such process was not followed. Even before the Tribunal, though such issue was raised but the Tribunal had considered the matter in a different perspective and turned down the case of the assessee merely on the grounds that there was no adequate expenditure in the process of manufacturing of the aforesaid product and the persons who were employed were not technical. The Tribunal had only considered that on perusal of the receipts, the expenditure was very low and the profit was high. On these grounds, the order of CIT(Appeal) was turned down by the Tribunal. In our considered opinion, in view of the law laid down by the Apex Court in aforesaid three judgments, we find it appropriate that the matter ought to have been examined by the Assessing Officer through the assistance of technical person or a committee of technical persons, if available in the department but it appears that such process was not followed and the product of the appellant was not found to be manufactured. Though the CIT(Appeal) had found that it was a manufacturing process, but the Tribunal has turned it down. In view of aforesaid, we find it appropriate to remand the matter to the Assessing Officer to call an opinion of the expert in the subject or if panel of experts is available in the department, to take 4 assistance of such panel and after getting an opinion of the experts, to decide that the product namely "Microprocessor based Fast Bus Transfer Scheme Panel" is a product by manufacturing or only an assembled item and thereafter, to decide the matter in accordance with law.
7. In view of aforesaid, this appeal is allowed and the matter is remanded to the Assessing Officer. The Assessing Officer on receipt of this order shall issue a notice to the appellant and thereafter shall proceed in the matter in accordance with law, as directed hereinabove."
in the light of the aforesaid order from the Hon'ble j u r i s d i c t i o n a l H i g h C o u r t , t h e s e a p p e a l s a r e r e s t o re d t o t h e file of the learned Assessing Officer to decide the same in accordance with the directions of the Hon'ble High Court.
In the result, appeal of assessee and revenue both, are allowed for statistical purposes.
Order pronounced in the open Court in the presence of l e a r n e d r e p r e s e n t a t i v e s o f b o t h t h e s i d e s o n 3 .1 .2 0 1 3 .
Sd sd
(R.C. SHARMA) (JOGINDER SINGH)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated: 3.1.2013
5
Copy to: Appellant/Respondent/CIT/CIT(A)/DR/Guard File Dn/-33