9911796707
TMI Blog2023 (5) TMI 1002X X X X Extracts X X X X X X X X Extracts X X X X ..... cer and overlooking the finding made during the assessment proceedings 4 Whether the Ld. CIT (A) has failed to appreciate the details/justification given by the AO and therefore addition made and that the AO had established that transactions were not genuine and thus the addition made was correct by giving detailed clarification after through verification of the submission made by the assessee. 3. Apart from that Revenue has also raised additional grounds:- "1. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in ignoring that the assessee has got its accounts audited only on 19.02.2018 and the audit report in form no 10CCB has been filed by assessee along with its revised return only on 19.02.2018, hence deduction w/s 80IA(4) of the Act is inadmissible to assessee as per the provisions of section 80IA(7) of the IT Act, 2 Whether on the facts and in the circumstances of the case and in law, the Ld CIT(A) has erred in ignoring that as per section 80AC of the IT Act no such deduction shall be allowed to assessee unless assessee furnishes a return of his income for such assessment year on or before the due date specified under sub se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Note 14(a) Details of sales of products Potassium Carbonate Rs. 7,10,03,854/- Caustic Potash Lye Rs. 2,45,10,097/- Total Rs. 9,55,13,951/- Since years assessee is in business of manufacturing above products and get revenue from sale of above products. 23.4. Thus the revenue of assessee is from various persons to whom Potassium Carbonate and Caustic Potash Lye is sold and is not from persons whose waste water is treated by assessee. Therefore the revenue of assessee is not eligible for deduction as it is not generated from eligible infrastructure activities. 23.5. There is no explanation as to how waste water is used to manufacture Potassium Carbonate and Caustic Potash Lye. What are the chemical contain of waste water and how this chemical contains are used to produce potassium carbonate and Caustic Potash Lye. No authentic data is submitted to show what are the chemical components of waste water and what are the chemical components of above referred products. Whether waste water really has that components which can be used for manufacturing above products. 23.6. Thus it is clear that assessee is neither engaged in the business activities defined in section 80IA n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oint. As a result a number of plants have been set up for treatment of effluents and its conveyance system. In this context, a number of representations have been received seeking clarification as to whether the effluent treatment and conveyance system may be treated as an infrastructure facility for the purposes of tax benefit under section 80-IA. (4) Under the treatment of effluents and its conveyance system, the effluents emanating from chemical industries are to be conveyed inside the sea through onshore pipeline and before discharging effluent through pipeline, entire load of effluent is to be treated to marine standards. Therefore, it is a part of water treatment system and would accordingly qualify as an infrastructure facility for the purposes of tax benefit under section 80-IA. However, an enterprise carrying on the business of (i) developing or (ii) operating and maintaining or (iii) developing, operating and maintaining such infrastructure facility shall be eligible to the tax benefit under section 80-IA, subject to fulfilment of other conditions laid down therein. 7. Thus, it has clarified that the effluent water treatment shall be considered as water treatment plant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sium Carbonate, Sodium carbonate, Potassium Hydroxide etc. This polluted water is concentrated in Multi-effect evaporator to remove the water contents. The concentrated stream is then crystallized using cooling water. During crystallization process Potassium Carbonate and Sodium carbonate crystals are formed as mixture. The crystallised slurry is filtered in centriduge. The wet cake is dried in dryer to generate Potassium Carbonate & Sodium carbonate mixture. The mother liquor and wash liquid are then sold as Potash Lye contains Potassium Hydroxide. 5.5 It is further stated that the appellant has obtained consent to set- up/consent to operate from the Maharashtra Pollution Control Board (MPCR) for setting up the ETP/WTP, Powers & by MPCR e governed by Water Prevention & Control of Pollution Act 1974 d (Prevention & Control of Pollution Act 1981, Water (Cess) Act 1977 & other provision under Environmental Protection) Act, 1988. The copy of the same is also submitted for verification of the AO during assessment proceedings and it was prayed that the assessee shall qualify for deduction u/s 80-IA, being an infrastructure facility and eligible for deduction. 9. Based on these facts ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
