DCIT, Circle-2(1) Hyderabad v. M/s. Kakatiya Cement Sugar & Industries Ltd
[Citation -2016-LL-1018-59]

Citation 2016-LL-1018-59
Appellant Name DCIT, Circle-2(1) Hyderabad
Respondent Name M/s. Kakatiya Cement Sugar & Industries Ltd.
Court ITAT-Hyderabad
Relevant Act Income-tax
Date of Order 18/10/2016
Assessment Year 2011-12
Judgment View Judgment
Keyword Tags waste product • plant
Bot Summary: In the facts and circumstances of the case, whether the CIT(A) is correct in law in holding that cogeneration power plant is an independent undertaking eligible for deduction under Section 80IA of the Income Tax Act, 1961 when the operations are integrated with the existing sugar plant. In the facts and circumstances of the case, whether the CIT(A) is correct in law in holding that generation of LP steam which is a waste product with no value is equal to generation of power which is eligible for deduction under Section 80IA of the Income Tax Act 1961. In the facts and circumstances of the case, whether the CIT(A) is correct in law in holding that LP steam has definite value where as such LP steam has no market value and in fact a marketable commodity. We have heard the Ld. D.R. and carefully perused the record. As could be noticed from the order passed by the Ld. CIT(A), deduction under section 80IA was held to be eligible having regard to the fact that under identical circumstances, the ITAT, Hyderabad Bench in assessee s own case for the A.Ys. The Ld. D.R. did not dispute the factual matrix of the case. Having regard to the circumstances of the case, we do not find any infirmity in the order passed by the Ld. CIT(A) since the view taken by the Ld. CIT(A) is in conformity with the conclusions reached by the ITAT in assessee s own case for the earlier years.


IN INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES : HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA.No.412/Hyd/2016 Assessment Year 2011-2012 DCIT, Circle-2(1) M/s. Kakatiya Cement Sugar & Hyderabad. vs. Industries Ltd., Hyderabad. PAN AABCK1868 (Appellant) (Respondent) For Revenue : Mr. GVSS Gopinath For Assessee : -None- Date of Hearing : 18.10.2016 Date of Pronouncement : 18.10.2016 ORDER PER D. MANMOHAN, V.P. This appeal by Revenue is directed against order passed by CIT(A)-IX, Hyderabad and it pertains to A.Y. 2011-2012. following grounds were urged by Revenue. 1. In facts and circumstances of case, whether CIT(A) is correct in law in holding that cogeneration power plant is independent undertaking eligible for deduction under Section 80IA of Income Tax Act, 1961 when operations are integrated with existing sugar plant. 2. In facts and circumstances of case, whether CIT(A) is correct in law in holding that generation of LP steam which is waste product with no value is equal to generation of power which is eligible for deduction under Section 80IA of Income Tax Act 1961. 2 ITA.No.412/Hyd/2016 M/s. Kakatiya Cement Sugar & Industries Ltd., Hyderabad. 3. In facts and circumstances of case, whether CIT(A) is correct in law in holding that LP steam has definite value where as such LP steam has no market value and in fact marketable commodity. 2. None appeared for assessee. We have heard Ld. D.R. and carefully perused record. As could be noticed from order passed by Ld. CIT(A), deduction under section 80IA was held to be eligible having regard to fact that under identical circumstances, ITAT, Hyderabad Bench in assessee s own case for A.Ys. 2007-2008 to 2009-2010 adjudicated issue in favour of assessee. Ld. D.R. did not dispute factual matrix of case. 3. Having regard to circumstances of case, we do not find any infirmity in order passed by Ld. CIT(A) since view taken by Ld. CIT(A) is in conformity with conclusions reached by ITAT in assessee s own case for earlier years. As pronounced in open Court, appeal filed by Revenue is dismissed. Order pronounced in open Court on 18.10.2016. Sd/- Sd/- (B. RAMAKOTAIAH) (D.MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT Hyderabad, Dated 18th October, 2016 VBP/- Copy to 1. DCIT, Circle-2(1), 8th Floor, B Block, I.T. Towers, A.C. Guards, Hyderabad. 2. M/s. Kakatiya Cement Sugar & Industries Ltd., H.No.1-10-140/1, Gurukrupa, Ashok Nagar, Hyderabad. 3. CIT(A)-9, 2nd Floor Annexe, Aayakar Bhavan, Basheerbagh, Hyderabad 500 004. 4. Pr. CIT-2, Hyderabad. 5. D.R. I.T.A.T. Bench, Hyderabad. 6. Guard File DCIT, Circle-2(1) Hyderabad v. M/s. Kakatiya Cement Sugar & Industries Ltd
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