M/s. Garg Steels, New Delhi V. ITO, New Delhi

CO 103/DEL/2013

• Counselvise Citation: [2014] 122 COUNSELVISE.COM (IT) 9255 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 19 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 03-01-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 01-01-2014
• Assessment Year: 2010-2011
• Appeal Filed On: 15-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MOHAMMAD SAHEB
• Assessee Lawyers: SATPAL SINGH
• Section: 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: C NEW DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI B. C. MEENA, ACCOUNTANT MEMBER I.T.A .NO. 1297 /DEL/2013 (AY-2007-08) ITO WARD-28(4), ROOM NO. 214, DRUM SHAPED BUILDING, I.P. ESTATE NEW DELHI (APPELLANT) VS GARG STEELS 287, PHATAK KAROR, AJMERI GATE DELHI P AN-AAHFG5722E (RESPONDENT) C. O-103/DEL/2013 (A. Y- 2010-11) APPELLANT BY SH.SATPAL SINGH, SR. DR RESPONDENT BY SH. MOHAMMAD SAHEB, ADV. ORDER PER B. C. MEENA, AM THE APPEAL OF THE REVENUE AND C.O OF THE ASSESSEE EMANATE FROM THE ORDER OF THE CIT (A) 25, NEW DELHI DATED 14/12/2012. THE GROUNDS OF APPEAL READ AS UNDER:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND FACT IN DIRECTI NG THE ASSESSING OFFICER TO EXAMINE THE CASE AND RECOMPUTED THE DEDU CTION U/S 80IC AFTER GIVING FULL OPPORTUNITY TO THE ASSESSEE WHICH AMOUNTS TO SETTING ASIDE THE MATTER WHICH IS NOT PERMISSIBLE IN LAW. GARG STEELS 287, PHATAK KAROR, AJMERI GATE DELHI P AN-AAHFG5722E (APPELLANT) VS ITO WARD-28(4), ROOM NO. 214, DRUM SHAPED BUILDING, I.P. ESTATE NEW DELHI (RESPONDENT) ITA NO. 1297 &C.O 103/D EL/13 2 2. THE LD. CIT(A) HAS ERRED IN LAW AND FACT IN AL LOWING THE ASSESSEES APPEAL WITHOUT APPRECIATING THE MATERIAL FACT THAT WHILE FILING THE RETURN FOR THE A.Y 2010-11 DEDUCTION U/S 80IC WAS N OT CLAIMED BY THE ASSESSEE. 2. THE GROUNDS OF C.O READ AS UNDER:- 1. THAT THE LD. CIT(A) WAS FULLY JUSTIFIED IN ALL OWING THE APPEAL AND DIRECTING THE PRESENT AO TO EXAMINE THE CLAIM OF TH E ASSESSEE AND RECTIFY THE MISTAKE WHICH DOES NOT AMOUNT TO SETTIN G ASIDE THE MATTER AS CLAIMED BY THE ASSESSING OFFICER. 2. THAT GROUND NO. 2 AS RAISED BY THE REVENUE IS MI SCONCEIVED BECAUSE THE LD. CIT(A) HAD NOT IGNORED ANY FACTS WHILE ALLO WING DEDUCTION U/S 80IC OF THE ACT. 3. THAT THE RESPONDENT ASSESSEE RESERVES ITS RIGHT TO ADD, AMEND/MODIFY THE GROUNDS OF CROSS OBJECTIONS. 3. WE HEARD BOTH THE SIDES OF THIS ISSUE. THE E-RE TURN OF INCOME WAS FILED DECLARING INCOME AT NIL CLAIMING U/S 80-IC OF RS.53 ,48,522/- WITH CPC, BANGALORE. THE RETURN WAS PROCESSED U/S 143(1) AND A DEMAND WAS RAISED. THE ASSESSEES CLAIM U/S 80IC WAS NOT ALLOWED. THE ASSE SSEE FILED IN PETITION U/S 154 OF I.T ACT FOR RECTIFYING THE MISTAKE. AS PER STAT EMENT OF ASSESSEES CLAIM U/S 80 I.C WAS MADE W.E.F 2007-08. ASSESSEE ELIGIBLE FOR DEDUCTION @ 100% FOR 5 YEARS. THE E-RETURN WAS FILED AFTER THE AUDIT U/S 44 AB AN D A CERTIFICATE IN FORM-10CCB WAS ALSO OBTAINED FROM THE AUDITOR. THE ASSESSEE H AS BEEN ALLOWED 80-IC DEDUCTION IN THE ASSESSMENT YEAR 2009-10 BY THE ASS ESSING OFFICER. ACIT CPC HAS WRONGLY DISALLOWED THE ASSESSEES CLAIM U/S 80- IC. CIT(A)DIRECTED TO A.O EXAMINE THE CLAIM OF THE ASSESSEE AND RECTIFYING TH E MISTAKE AND PASS NECESSARY ORDER. THE REVENUE CHALLENGED ACTION OF CIT(A) ON THE GROUND THAT SUCH DIRECTIONS AMOUNT TO SET ASIDE THE ORDER FOR WHICH THE CIT(A) HAS NO POWER TO DO. THE ASSESSEE OBJECTED TO IT STATING THAT IT DOES N OT AMOUNT TO SET ASIDE WHEN THE CIT(A) HAS HELD THAT ACIT CPC, WAS WRONG IN DISALLO WING THE CLAIM U/S 80-IC OF THE ACT TO THE ASSESSEE. IN OUR CONSIDERED VIEW TH E ASSESSEES CLAIM WAS WRONGLY ITA NO. 1297 &C.O 103/D EL/13 3 DISALLOWED WHILE PROCESSING THE RETURN. THERE WAS N O VALID REASON FOR SUCH DISALLOWANCES. THE ASSESSING OFFICER IS TO VERIFY THAT WHETHER THE FIRST YEAR OF THE CLAIM 80-IC WAS 2007-08 AND WHETHER ASSESSEE WAS EN TITLED FOR SUBSEQUENT 5 YEARS FOR CLAIMING THE DEDUCTION U/S 80IC. WE DIRECT THE AO TO DO SO. 4. IN THE RESULT, THE APPEAL OF THE REVENUE STAND D ISMISSED AND C.O OF THE ASSESSEE STAND ALLOWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 3 RD JANUARY 2014. SD/- SD/- (BHAVNESH SAINI) ( B. C. MEENA) JUDICIAL MEMBER ACCOU NTANT MEMBER DATED: 03 /01/2014 *R. NAHEED* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI