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2015 (10) TMI 387 - AT - Income TaxClaim of deduction u/s.80IB in respect of LPG Bottling Plant - AO denied the deduction on the ground that the activity of filling of gas into cylinder does not constitute manufacturing and the LPG bottling plants are part of refining activities - CIT(A) allowed the claim - Held that - In view of the aforesaid decision of the Hon ble Jurisdictional High Court in Hindustan Petroleum Corporation Ltd. (2013 (5) TMI 124 - BOMBAY HIGH COURT), which is applicable mutatis mutandis in assessee s case also, we affirm the order of the learned Commissioner (Appeals) to held bottling of gas cylinders is found eligible for deduction u/s. 80IA. - Decided in favour of assessee. Claim u/s 80G for the payment towards contribution to Rajiv Gandhi Institute of Petroleum Technology - Commissioner (Appeals) held that the donation to such institution can be allowed only when such institution or contribution is specifically approved by the Government for deduction under any specific section - Held that - Commissioner (Appeals) has merely asked the Assessing Officer to examine the claim of deduction under section 80G, after verifying the necessary documents / certificate for the claim. We do not find any violation of provision of section 250(4), while giving such direction as he has not set aside the matter for fresh adjudication but only for verification which he empowered to do so while disposing off the appeal. - Decided against revenue.
Issues involved:
1. Appeal by Revenue challenging orders for assessment years 2007-08 and 2008-09 under section 143(3) of the Income Tax Act, 1961. 2. Claim of deduction under section 80IB for LPG plants. 3. Direction to consider claim under section 80G for donation to an institution. Analysis: Issue 1: Appeal by Revenue for assessment years 2007-08 and 2008-09 The Revenue filed appeals challenging the orders for assessment years 2007-08 and 2008-09 passed by the Commissioner (Appeals)-IV, Mumbai, under section 143(3) of the Income Tax Act, 1961. Both appeals pertained to the same assessee and common issues, thus were heard together. The grounds raised by the Revenue included challenges to the orders passed by the Commissioner (Appeals) for both assessment years. Issue 2: Claim of deduction under section 80IB for LPG plants The primary issue revolved around the claim of deduction under section 80IB amounting to Rs. 1,45,84,376 for profits from LPG plants. The Assessing Officer initially denied the deduction, arguing that filling gas into cylinders does not constitute manufacturing and that LPG bottling plants are part of refining activities. However, the Commissioner (Appeals) allowed the claim based on decisions by the Tribunal and the High Court, holding that bottling of gas cylinders qualifies as production activity eligible for deduction under section 80IB. The Tribunal affirmed the Commissioner's order citing the High Court's decision, dismissing the Revenue's appeal on this ground. Issue 3: Direction to consider claim under section 80G for donation Another issue was the direction by the Commissioner (Appeals) to the Assessing Officer to consider the assessee's claim under section 80G for a donation of Rs. 1.57 crores to an institution. The Assessing Officer had rejected the claim due to lack of evidence. The Commissioner (Appeals) directed the assessee to provide necessary documents for the claim under section 80G. The Revenue contested this direction, arguing that the issue should not have been sent back to the Assessing Officer. However, the Tribunal found no violation of the law in the Commissioner's direction and dismissed the Revenue's appeal on this ground. In conclusion, the Tribunal dismissed the Revenue's appeals for both assessment years 2007-08 and 2008-09, upholding the orders passed by the Commissioner (Appeals) regarding the deduction under section 80IB and the direction to consider the claim under section 80G.
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