Income Tax Appellate Tribunal - Chandigarh
M/S Jai Naina Devi Stone Crusher, Baddi vs Department Of Income Tax on 14 November, 2011
IN THE INCOME TAX APPELLATE TRIBUNAL
CHANDIGARH BENCH 'B', CHANDIGARH
BEFORE Ms. SUSHMA CHOWLA, JUDICIAL MEMBER
AND SHRI MEHAR SINGH, ACCOUNTANT MEMBER
ITA Nos.482 & 483/Chd/2011
(Assessment Year : 2001-02 & 2002-03)
The Income Tax Officer, Vs. M/s Jai Naina Devi Stone Crusher
Baddi, (H.P.). VPO Berson Tehsil Nalagarh,
Distt. (H.P.)
PAN: AAEFJ3716E
(Appellant) (Respondent)
Appellant by : Shri Akhilesh Gupta, DR
Respondent by : None
Date of hearing : 14.11.2011
Date of Pronouncement : 24.11.2011
O R D E R
PER SUSHMA CHOWLA, J.M, :
Both the appeals filed by the Revenue are against the consolidated order of the Commissioner of Income-tax(Appeals), Shimla dated 25.02.2011 relating to assessment years 2001-02 and 2002-03 against the order passed u/s 143(3)/147 the Income Tax Act, 1961.
2. The ground of appeal raised by the Revenue in both the appeals reads as under:
"1. On the facts and in the circumstances of the case, the ld. CIT (A) has erred in deleting the addition of Rs.164783/-(Rs.699,411 in ITA No.483/Chd/2011) following the decision of H.P. High Court in the case of M/s D.J. Stone Crusher Vs. CIT (2010)-033DTR-0267."
3. Despite service of notice, none appeared on behalf of the assessee. Hence, we proceed to decide the appeals after hearing the learned D.R. for the Revenue.
4. In both the appeals filed by the Revenue the only issue raised is regarding the claim of deduction under section 80IB of the Act. Since in both appeals, issue raised is same, the appeals are being decided by this consolidated order for the sake of convenience.
5. The assessee was carrying on the business of stone crushing and during the year under consideration had claimed deduction under section 80IB of the Act. The Assessing Officer held the assessee not eligible for deduction claimed under section 80IB of the Act as crushing of stone does not involve any manufacturing activity. The CIT (Appeals) allowed the claim of the assessee in view of ratio laid down by the jurisdictional H.P. High Court in M/s D.J. Stone Crusher Vs. CIT (2010) 33 DTR 267 (HP) and also the order of the Chandigarh Bench of Tribunal in Ram Kumar Vs. ITO (ITA No.988 & 989/Chd/2009)
6. The Revenue is in appeal against the order of the CIT (Appeals).
7. On perusal of the record we find that the only issue raised in the present appeal is in connection with the eligibility for deduction under section 80IB of the Act. The assessee admittedly, is carrying on the business of stone crushing and the issue raised in the present appeal was whether the assessee was carrying on any manufacturing activity which made it eligible for the deduction under section 80IB of the Act. The present issue stands covered by the ratio laid down by the Hon'ble H.P. High Court in M/s D.J. Stone Crusher (supra) wherein it has been laid down that stone crushing activities carried on by an assessee is manufacturing activity, entitling the assessee to be eligible for deduction under section 80IB of the Act. Following the above said ratio laid down by the jurisdictional H.P. High Court (supra), we uphold the order of the CIT (Appeals) in allowing the claim of deduction under section 80IB of the Act as stone crushing activity carried on by the assessee is manufacturing activity making the assessee eligible for claim of deduction under section 80IB of the Act. The ground of appeal raised by the Revenue is dismissed.
8. In the result, both the appeals filed by the Revenue are dismissed.
Order Pronounced in the Open Court on 24th day of November, 2011.
Sd/- Sd/-
(MEHAR SINGH) (SUSHMA CHOWLA)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated : 24th November, 2011
*Rati*
Copy to: The Appellant/The Respondent/The CIT(A)/The CIT/The DR.
True Copy
By Order
Assistant Registrar, ITAT, Chandigarh
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