TMI Blog2011 (8) TMI 1149X X X X Extracts X X X X X X X X Extracts X X X X ..... admittedly falls in the jurisdiction of State of Gujarat as noted above. For all practical intent and purposes the cases of Daman falls in the jurisdiction of Vapi and Valsad. Therefore, the assessee is rightly held to be assessed within the jurisdiction of State of Gujarat. Thus, the circular of CBDT applies to the case of the assessee also. The learned CIT(A) on proper appreciation of the facts and CBDT Circular and the beneficial provisions extended to the assessee, rightly allowed the appeal of the assessee by granting deduction u/s 80 IB of the IT Act - ITA No.1634/Ahd/2009, ITA No.1635/Ahd/2009 - - - Dated:- 26-8-2011 - SHRI G. D. AGARWAL, VP AND SHRI BHAVNESH SAINI, JM) For the Appellant :Shri Raj Mehra, Sr. DR O R D E R PER BHAVNESH SAINI: Both the appeals by the revenue are directed against different orders of the learned CIT(A), Valsad dated 26-02-2009 for the assessment year 2006-07 in the case of both the assessees. Since the issue is common in both the appeals, therefore, both were heard together and we dispose of the same through this common consolidated order. ITA No.1634/Ahd/2009 (M/s. Packwell Packaging) 2. The revenue challenge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l the corporate assessees irrespective of their income level and non-cooperate assessee having income above ₹ 5 lacs are physically assessed by the ACIT, Vapi Circle, Vapi and all the other small tax payee assessees having income below ₹ 5 lacs as a matter of convenience are assessed by Income Tax Officer holding charge of Income Tax Office at Vapi Ward-4, Daman. Thus according to the assessee Income Tax Office situated at Daman is not an independent office from that of Income Tax Office at Vapi. The assessee also submitted before the learned CIT(A) that when the income of such small tax payer assessees who are assessed at Daman exceeds ₹ 5 lacs their files are automatically transferred to ACIT, Vapi Circle, Vapi without passing any order u/s 127 of the IT Act. Thus it was submitted before the learned CIT(A) that the working of Income Tax Office, Vapi which in turn is under the jurisdiction of office of CIT, Valsad, office of CCIT Surat and ultimately office of CCIT Ahmedabad situated in the State of Gujarat. In this manner the assessee contended that without prejudice to other arguments it shall be considered as an assessee in the state of Gujarat. The learned Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es enumerated in clauses (a) to (f) of section 81(i). If the activity in question was incidental or ancillary to one of the activities mentioned in those clauses, the proviso did not apply. The ginning and pressing was part of the integral process of marketing. It was an activity incidental or ancillary to the marketing of the produce of its members -- ----------- The sale of the cotton was effected by the appellant to the outside world and not to its members. The appellant was entitled to the exemption of the profits and gains derived form the activity of the entire business of ginning and pressing of cotton and marketing it by virtue of section 81 (i) (c ). CIT AMRITSAR v/s STRABOARD MFG. CO. LTD [1989] 177 ITR page 431 (SC) Held, the provision for rebate and other concessions has been made in the Income-tax Act, 1961, for the purpose of encouraging the setting up of new industries and the industries are those described in the relevant schedules. When the Schedules refer to Paper and Pulp , they in fact intend to refer to the paper and pulp industry. The expression has been used comprehensively so as to include newsprint, paperboard and strawboard within the meaning ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y are known as an assessee in Valsad District. The Board has brought out the circular whose intention is benevolent in nature. It is to enable the assessees to prepare and file their return of income in various offices falling jurisdiction of CCIT (Administration) Ahmedabad even though the work in the region has been disrupted by heavy floods. More over even Daman in an administrative sense was also severely affected by flood and torrential rains. It is very difficult to imagine that a statute like income tax can differentiate assessees for the same hardship caused on the basis of their residence or location. Assessee means one who is assessed and assessee in the state of Gujarat means one who is assessed in the state of Gujarat. In the present case under appeal originally the income tax office at Vapi which is under the jurisdiction of CIT Valsad and CCIT Surat has exercised and even today exercises jurisdiction over the assessees as regards its assessment. Further the PAN TAN details of the appellant clearly demonstrates the jurisdiction of the appellant in the state of Gujarat. The appellate proceedings are conducted in the state of Gujarat and the jurisdictional appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also explained that due to different category of AO, status, income and in cases of non-cooperate, the assessees having income of more than ₹ 5 lacs are assessed at Vapi and the small assessees are assessed at the Office at Vapi, Ward -4, Daman. It is not in dispute that the office of Income Tax Office, Vapi, Ward-4, Daman falls within the jurisdiction of Income Tax Officer, Vapi who is in jurisdiction of CIT, Valsad and CCIT, Surat and CCIT, Ahmedabad which are situated in the State of Gujarat. The PAN and TAN details submitted by the assessee clearly indicated that the jurisdiction of the assessee lies at Gujarat only. Even the learned CIT(A) who decided the appeal of assessee at Daman is situated at Valsad (Gujarat). The copy of the acknowledgement of return is filed in the paper book to show that return is filed in the office of Income Tax Office, Vapi, Ward-4, Daman on 01-12-2006 and the Assessing Officer in the case of the assessee is also designated as Income Tax Officer, Vapi, Ward-4, Daman. The contention of the assessee, is therefore, correct that for all purposes the assessee is assessed at Vapi (State of Gujarat). The jurisdiction of the assessing authority at Da ..... 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