BANASKANTHA DIST. CO-OP. MILK PRODUCERS UNION LTD Vs. ASST. COMMISSIONER OF INCOME TAX
LAWS(GJH)-2016-9-156
HIGH COURT OF GUJARAT
Decided on September 08,2016

BANASKANTHA DIST. CO-OP. MILK PRODUCERS UNION LTD Appellant
VERSUS
ASST. COMMISSIONER OF INCOME TAX Respondents

JUDGEMENT

A.J.SHASTRI, J. - (1.) The present petition is filed for challenging the validity of the impugned notice issued under Section 148 of the Income Tax Act (for short 'the Act') dated 28.03.2011 and an order dated 01.07.2011 issued rejecting the objection filed by the petitioner.
(2.) The brief facts of the case are that the petitioner is a cooperative society engaged in the business of procuring and supplying processing and marketing of milk products, tea products. The petitioner had initially filed its return of income for assessment year 2002­03 declaring total income as 'Nil' and the gross total income declared was Rs.1,11,87,254/­. The said return came up under scrutiny and vide order dated 07.12.2004, in exercise of powers under Section 143(3), the assessment order came to be framed. Similarly, for another assessment year 2003­04, the petitioner has declared his income as again 'Nil' by declaring gross total incomeas Rs.68,97,218/­ and with respect to that year also, the scrutiny assessment was framed on 30.12.2005. In the next assessment year, 2004­05, the petitioner filed the return of income under Section 139(1) of the Act declaring total income at Rs.3,15,13,990/­ after claiming deduction under Section 80E(2)(c) as also under Section 80P(2)(d) and under Section 80IB in respect of cattle feedas well as Banas­II dairy plants. The said return was accompanied by the statement of income, as audited accounts and audit reports which was under Section 44AB of the Act. Assessing Officer pursuant to the said submission, as selected the case of the petitioner for scrutiny and issued notice under Section 143(2) and 143(1) of the Act, requiring certain details to be provided by the petitioner including, inter alia, the details of separate trading particulars and profit and loss accounts of cattle feed and Banas­II expansion undertakings and the copy of bills of plant and machinery of the said project. The date of commencement of commercial operation of new projects for which deduction under Section 80IB has been claimed and after considering these bills and particulars provided by the petitioner, the assessment was framed on 28.12.2016 under Section 143(3) of the Act.While framing such assessment, the claim of deduction in respect of cattle feed, plant as well as Banas­II expansion undertakings of Rs.2,83,68,423/­ under Section 80IB of the Act disallowed.
(3.) It appears from the record that feeling aggrieved by the said assessment order, an appeal came to be filed before the learned Commissioner of Income Tax (Appeals) and in the said appeal, an order came to be passed on 12.02.2008, whereby, the claim of deduction to the extent of Rs.1,13,33,779/­ in respect of Banas­II expansion unit came to be considered and granted and so far cattle feed plant is concerned, the denial of deduction came to be upheld by partly allowing the appeal filed by the petitioner. The finding with respect to that requires to be noted here. "Thus for Banas­II unit, the appellant fulfills the conditions laid down by the provisions of the act u/S. 80IB, barring filing of proper Audit report. It also fulfills the conditions laid down by the Hon'ble SC in 107 ITR 195, therefore, it is entitled to the deduction claimed by it in the return, with initial AY 2002­03 for Banas­II, the appellant is eligible for deduction at 100% for 3 years including the initial AY that is for 2002­03, 2003­04 and 2004­05." ;


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