Sh. Bhavesh T Prasana, Parwanoo V. DCIT, Parwanoo

ITA 1011/CHANDI/2016

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3834 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-12-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 22-09-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S K MITTAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS.ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 1011/CHD/2016 ASSESSMENT YEAR: 2012-13 SHRI BHAVESH T PRASANA, VS THE DCIT, PLOT NO. 78, SECTOR 1, CIRCLE, PARWANOO (HP). PARWANOO (HP). PAN NO. : AJSPP0728K & ITA NO. 1013/CHD/2016 ASSESSMENT YEAR: 2012-13 M/S UPS INVERTOR.COM, VS THE DCIT, VILLAGE NARYAL, CIRCLE, SECTOR - 4, PRWANOO, PARWANOO (HP). DISTT. SOLAN (HP). PAN NO. : AABFU7064R (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANOJ KUMAR RESPONDENT BY : SHRI S.K.MITTAL, DR DATE OF HEARING : 15.12.2016 DATE OF PRONOUNCEMENT : 15.12.2016 O R D E R PER BHAVNESH SAINI,JM BOTH THE APPEALS BY DIFFERENT ASSESSEES ARE DIRECTE D AGAINST THE DIFFERENT ORDERS OF LD. CIT(APPEALS) SH IMLA FOR THE ABOVE ASSESSMENT YEARS. 2. IN BOTH THE APPEALS, ASSESSEE CHALLENGED THE ORD ERS OF LD. CIT(APPEALS) IN CONFIRMING THE DEDUCTION UND ER SECTION 80IC OF INCOME TAX ACT ONLY TO THE EXTENT O F 25% AS AGAINST 100% BY HOLDING THAT BENEFIT OF SUBSTANTIAL 2 EXPANSIONS ALLOWABLE ONLY TO THE UNDERTAKINGS WHICH WERE EXISTING AS ON 07.01.2003. 3. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSES SEES HAVE CLAIMED DEDUCTIONS UNDER SECTION 80IC OF THE A CT TO THE EXTENT OF 100% ELIGIBLE PROFIT FOR THE FIRST FI VE YEARS. HOWEVER, IT IS NOTICED THAT THE ASSESSEES HAVE ALSO CLAIMED 100% DEDUCTION AGAINST THE ELIGIBLE PROFIT EVEN AFT ER FIVE YEARS PERIOD. THE ASSESSING OFFICER AFTER DISCUSS ING ISSUE AT LENGTH HELD THAT ASSESSEES ARE ENTITLED FOR 25% OF THE DEDUCTION UNDER SECTION 80IC OF THE ACT IN RESPECT OF THE ASSESSMENT YEARS UNDER APPEAL BECAUSE THE SAME ARE BEYOND FIVE YEARS PERIOD AND ACCORDINGLY, RESTRICT ED THE CLAIM OF DEDUCTION UNDER SECTION 80IC OF THE ACT TO THE EXTENT OF 25% AS AGAINST 100% CLAIMED BY THE ASSESS EES. 4. THE LD. CIT(APPEALS) FOUND THAT THE SAID ISSUE H AS ALREADY BEEN ADJUDICATED UPON BY JURISDICTIONAL ITA T CHANDIGARH BENCH IN THE CASE OF M/S HYCRON ELECTRON ICS VS ITO ( REPORTED IN 41 ITR (CHD) 486 IN WHICH IT W AS HELD THAT, ASSESSEE IS ENTITLED TO ONLY 25% OF THE DEDUCTION DURING THE PRESENT YEAR BECAUSE ASSESSEE HAD ALREAD Y AVAILED THE PERIOD OF FULL DEDUCTION @ 100% IN EARL IER FIVE YEARS I.E. FROM ASSESSMENT YEARS 2004-05 TO 2008-09 . THE LD. CIT(APPEALS) REPRODUCED THE ORDER OF THE TRIBUN AL IN THE IMPUGNED ORDERS AND DISMISSED THE APPEALS OF THE ASSESSEES. 5. THE LD. COUNSEL FOR THE ASSESSEE APPEARING FOR ASSESSEES HAS ADMITTED THAT ISSUE IS COVERED AGAINS T THE 3 ASSESSEES BY ORDER OF ITAT CHANDIGARH BENCH IN THE CASE OF M/S HYCRON ELECTRONICS (SUPRA). 6. AFTER CONSIDERING THE SUBMISSIONS OF THE PARTIES , WE ARE OF THE VIEW NO INTERFERENCE IS CALLED FOR IN TH E MATTER. THE ASSESSEES HAVE ALREADY CLAIMED DEDUCTION UNDER SECTION 80IC OF THE ACT TO THE EXTENT OF 100% IN FI RST FIVE YEARS. THEREFORE, FOR THE REMAINING PERIOD, ASSESS EES WOULD BE ENTITLED FOR DEDUCTION UNDER SECTION 80IC TO THE EXTENT OF 25% ONLY AS AGAINST CLAIM OF 100% DEDUCTI ON. THE LD. CIT(APPEALS) THEREFORE, RIGHTLY FOLLOWED THE OR DER OF ITAT CHANDIGARH BENCH IN THE CASE OF M/S HYCRON ELECTRONICS (SUPRA). NO INFIRMITY HAS BEEN POINTED OUT IN THE IMPUGNED ORDERS FOR FOLLOWING THE ORDER OF THE TRIBUNAL. NO INTERFERENCE IS, THEREFORE, CALLED FO R. THE APPEALS OF THE ASSESSEE HAVE NO MERIT. SAME ARE, ACCORDINGLY, DISMISSED. 7. IN THE RESULT, BOTH THE APPEALS OF DIFFERENT ASS ESSEES ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- ( ANNAPURNA GUPTA) (BHAVNES H SAINI) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED : 15 TH DECEMBER,2016. POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT,DR ASSISTANT REGISTRAR, ITAT CHANDIGARH