TMI Blog2023 (5) TMI 1002X X X X Extracts X X X X X X X X Extracts X X X X ..... am 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 Crystallized slurry is filtered in centrifuge. The wet cake is dried in dryer generate Potassium Carbonate Sodium carbonate mixture. The mother liquor and wash liquids sold as Potash Lye contains Potassium Hydroxide. Thus, it is purely effluent treatment plant and process. Apart from that the assessee has obtained consent to set-up/consent to operate from the Maharashtra Pollution Control Board (MPCB) for setting up the ETP/WTP Thus, assessee s effluent water treatment plan categorically falls within the ambit and scope of Section 80IA(4) as misinterpreted by the AO so as to deny the claim of deduction u/s.80IA(4). Nowhere the AO has pointed out as to what are the conditions laid down in Section 80IA(7) has not been fulfilled because assessee had filed and obtained the audit report alongwith revised return on 19/02/2018. Nowhere the AO has held that revised return is invalid. In any case, the reason which was given before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 section (1) of section 139 of IT Act. 4. The brief facts are that assessee company is engaged in the business of treatment of effluent water sold waste and has received approval consent from Maharashtra Pollution Control Board vide letter dated 23/03/2007 for manufacture of 30 MT per month potassium carbonate by using waste water from Vinati Organics as raw material. The revised return of income filed on 19/02/2018. In the revised return the assessee has claimed deduction u/s.80IA(4) alongwith it, it has filed audit report in Form 10CCB electronically wherein the Auditors have quantified the deduction u/s. 80IA(4) at Rs.5,67,13,974/-. Ld. AO has denied the claim of d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 nor it is earning revenue from the eligible business activities and therefore no deduction is allowable to assessee. 23.7. Without prejudice to above the assessee has not fulfilled other conditions also. 1) A certificate in Form 10CCB is not filed alongwith return, condition laid down u/s 80IA(7) is not fulfilled. 2) Certificate issued by Maharashtra Pollution Board was available only upto 31.12.2011 No further extension was granted. Therefore the project is not approved as defined in section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 eligible u/s. 80IA. Before us, it has been explained that the assessee gets effluent water and this water contains Potassium Carbonate, Sodium carbonate, Potassium Hydroxide in dissolved form. This aqueous stream containing the dissolved salts is received by the assessee. Then this stream 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 and the finding of the ld. CIT (A), we do not find any merits in the grounds raised by the department that assessee is not eligible for deduction u/s. 80IA(4). Apart from that, assessee has filed Form No.10CCB and working of claim of deduction u/s.80IA which according to additional ground is that same was filed alongwith revised return, hence, it is admissible as per the provision of Section 80IA(7). First of all this was not the ground and otherwise also 80IA (7) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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