ACIT, JAIPUR vs. GREEN FIRE EXPORTS, JAIPUR

आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR Jh dqy Hkkjr] U;kf;d lnL; ,oa Jh foØe flag ;kno] ys[kk lnL; ds le{k BEFORE: SH. KUL BHARAT, JM & SH. VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 871/JP/2016 fu/kZkj.k o"kZ@Assessment Years : 2010-11 cuke The Assistant Commissioner of M/s Green Fire Exports, 1st, Vs. Income-tax Central Circle-1, H-1, SEZ Phase Jaipur Sitapura, Jaipur LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAEFG9837H vihykFkhZ@Appellant izR;FkhZ@Respondent vk;dj vihy la-@ITA No. 872/JP/2016 fu/kZkj.k o"kZ@Assessment Years : 2011-12 cuke The Assistant Commissioner of M/s Green Fire Exports, 1st, Vs. Income-tax Central Circle-1, H-1, SEZ Phase Jaipur Sitapura, Jaipur LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAEFG9837H vihykFkhZ@Appellant izR;FkhZ@Respondent

fu/kZkfjrh dh vksj ls@ Assessee by : Shri S.R.Sharma jktLo dh vksj ls@ Revenue by :Shri D.S.Kothari(CIT) lquokbZ dh rkjh[k@ Date of Hearing : 27/04/2017 mn?kks"k.kk dh rkjh[k@ Date of Pronouncement : 28/04/2017

vkns'k@ ORDER

PER: VIKRAM SINGH YADAV, A.M.: These are two appeals filed by the Revenue against two separate orders passed by ld. CIT(A)-4, Jaipur of even date 22/07/2016 for

ITA No. 871 & 872 /JP/2016 2 The Assistant Commissioner of Income-tax Vs M/s Green Fire Exports A.Y. 2010-11 & 2011-12 respectively. Since common issues are

involved, both the appeals were heard together and disposed off by this

common order. The grounds of appeal taken by the revenue are as

under:-

ITA No. 871/JP/2016:-

“1. Whether on the facts and in the circumstances of the case the CIT(A) was right in deleting the addition of Rs. 11,42,53,528/- made by AO on account of disallowance of deduction u/s 10AA of the Income Tax ITA No. 872/JP/2016:-

“1. Whether on the facts and in the circumstances of the case the CIT(A) was right in deleting the addition of Rs. 2,05,25,672/- made by A.O on account of disallowance of deduction u/s 10AA of the Income-Tax Act.

the appeals filed by the Revenue is covered in favour of the assessee by

the decision of Coordinate Benches in assessee’s own case for

A.Y 2007-08, 2008-09 and 2009-10 respectively. It was further

submitted that even AO has passed similar orders following earlier year

assessment orders and as such, there is no change in the facts and

circumstances of the case. It was, accordingly, submitted that the

earlier orders passed by the Coordinate Benches may kindly be

followed.

ITA No. 871 & 872 /JP/2016 3 The Assistant Commissioner of Income-tax Vs M/s Green Fire Exports 3. The ld. DR is heard who has relied on the order of the lower

authorities.

available on record. It is noted that ld. CIT(A) has granted the

necessary relief to the assessee by following the earlier orders passed

by the Coordinate Benches whether the matter has been decided in

favour of the assessee.

431/JP/2012 for AY 2009-10 dated 17.07.2015 is as under:

“We have heard rival contentions and perused the material on record. The Coordinate Bench in ITA No. 426/JP/2010 for A.Y 2007-08 and in ITA No. 477/JP/2011 for A.Y 2008-09 had considered the issue of reconstruction and deduction claimed under section 10AA. The ld. CIT(A) has followed the ITAT order and allowed the assessee’s appeal holding that the issue is identical to assessment years 2007-08 and 08- 09. Regarding rejection of books of accounts under section 145(3) of the IT Act and applying GP rate of 25% and estimating the profit under section 80IA(10) read with section 10AA(9), the AO had compared the GP and NP rate of M/s Green Fire and assessee for A.Y. 2007-08. The ld. AO has not brought on record that M/s Green Fire has exported the same items to the same parties. Further, it is informed by the assessee that business of M/s Green Fire Exports is exclusively manufacturing of ornaments studded with precious and semi precious stones and diamonds. Whereas M/s Green Fire was engaged in trading of diamond and manufacturing of studded diamond items and claimed that both the business are separate and cannot be compared. The assessee’s assertion was that in diamond business, the margin of profit remains very low as compared to precious/semi precious stones and that the assessee firm manufactured fancy items having very good demand in international market and the margin of profit was also higher on it. The GP and NP was also dependent on dollar rate with rupee. It is also fact that SEZ Unit is controlled by the Customs Authorities and there is a

ITA No. 871 & 872 /JP/2016 4 The Assistant Commissioner of Income-tax Vs M/s Green Fire Exports check on the under invoicing or over invoicing. The ld. AO had not also brought on record that items exported by the two concerns are same and there are no details of parties to whom the goods were exported. The department had not filed any appeal on similar issue before us in A.Y 2007-08 and 2008-09. Therefore, we confirm the order of ld. CIT(A).” 6. Undisputedly, there is no change in the facts and circumstances of the case or in the legal position. No contrary authority has been brought to our notice. In light of the same, respectively following the orders passed by the Coordinate Benches in Assessee’s own case in ITA No. 426/JP/10 order dated 18-3-2011 for AY 2007-08, ITA No. 477/JP/11 order dated 20/01/2012 for AY 2008-09 and ITA No. 431/JP/12 order dated 17/07/2015 for AY 2009-10, we confirm the order passed by the ld CIT(A) for the both the years under consideration. In the result, ground taken by the Revenue for the both the years is dismissed.

In the result, both the appeals of Revenue are dismissed.

Sd/- Sd/- ¼dqy Hkkjr ½ ¼foØe flag ;kno½ (Kul Bharat) (Vikram Singh Yadav) Jaipur Dated:- 28/04 /2017 *Ganesh आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. vihykFkhZ@The Appellant- The Assistant Commissioner of Income-tax 2. izR;FkhZ@ The Respondent- M/s Green Fire Exports vk;dj vk;qDr@ CIT –TDS, Jaipur 3. vk;dj vk;qDr¼vihy½@The CIT(A)-III, Jaipur 4. 5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत

ITA No. 871 & 872 /JP/2016 5 The Assistant Commissioner of Income-tax Vs M/s Green Fire Exports 6. xkMZ QkbZy@ Guard File (ITA No.871 & 872 /JP/2016)

vkns'kkuqlkj@ By order,

सहायक पंजीकार@ Aेेपेजंदज. त्महपेजतंत