M/s Eurolinks, Delhi V. DCIT, Parwanoo

ITA 1014/CHANDI/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9028 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 23-09-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S K MITTALDR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA NO. 1014/CHD/2016 ASSESSMENT YEAR: 2012-13 M/S EUROLINKS, VS THE DCIT, A-224, MAHIPALPUR, CIRCLE, DELHI. PARWANOO (HP). PAN: AABFE9015E (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANOJ KUMAR RESPONDENT BY : SHRI S.K.MITTAL,DR DATE OF HEARING : 25.10.2016 DATE OF PRONOUNCEMENT : 27.10.2016 O R D E R THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF LD. CIT(APPEALS) SHIMLA DATED 28.07.20 16 FOR ASSESSMENT YEAR 2012-13 CHALLENGING THE ORDER O F LD. CIT(APPEALS) IN CONFIRMING THE DEDUCTION UNDER SECT ION 80IC OF THE ACT ONLY TO THE EXTENT OF 25% AS AGAINS T 100%. 2. THE ASSESSEE STARTED ITS MANUFACTURING ACTIVITY OPERATION ON 15.07.2055 AND INITIAL ASSESSMENT YEAR FOR CLAIM OF DEDUCTION UNDER SECTION 80IC OF THE ACT WA S ASSESSMENT YEAR 2006-07. THE ASSESSEE HAD ALREADY 2 CLAIMED DEDUCTION UNDER SECTION 80IC OF THE ACT TO THE EXTENT OF 100% OF THE ELIGIBLE PROFIT FOR FIVE YEAR S PERIOD STARTING FROM ASSESSMENT YEAR 2006-07 TO ASSESSMENT YEAR 2010-11. IT WAS NOTICED THAT ASSESSEE FIRM HA D AGAIN CLAIMED 100% DEDUCTION AGAINST ELIGIBLE PROFI TS IN THE RELEVANT ASSESSMENT YEAR 2012-13 WHICH IS 7 TH YEAR OF PRODUCTION OF THE FIRM BY CLAIMING TO HAVE CARRI ED OUT SUBSTANTIAL EXPANSION IN FINANCIAL YEAR 2009-10. T HE ASSESSING OFFICER, HOWEVER, ALLOWED DEDUCTION UNDER SECTION 80IC OF THE ACT @ 25% ONLY AS AGAINST CLAIM OF 100% DEDUCTION MADE BY THE ASSESSEE. THE LD. CIT(APPEALS) NOTED THAT THIS ISSUE IS COVERED AGAIN ST THE ASSESSEE BY ORDER OF ITAT CHANDIGARH BENCH IN THE C ASE OF M/S HYCRON ELECTRONICS VS ITO 41 ITD (TRIBUNAL)(CHD) 486 IN WHICH IT WAS HELD THAT ASSE SSEE IS ENTITLED TO 25% OF DEDUCTION DURING THE PRESENT YEAR BECAUSE ASSESSEE HAD ALREADY AVAILED THE PERIOD OF FULL DEDUCTION @ 100% IN EARLIER FIVE YEARS. THE APPEAL OF THE ASSESSEE WAS, ACCORDINGLY, DISMISSED FOLLOWING THE ORDER OF THE TRIBUNAL. 3. THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT ISSUE IS COVERED AGAINST ASSESSEE BY ORDER OF ITAT CHANDIGARH BENCH IN THE CASE OF M/S HYCRON ELECTRON ICS (SUPRA). I, THEREFORE, FOLLOWING THE ORDER OF DIVI SION BENCH OF THE TRIBUNAL IN THE CASE OF M/S HYCRON 3 ELECTRONICS (SUPRA) WHICH IS REPRODUCED IN THE IMPU GNED ORDER, DISMISS THE APPEAL OF THE ASSESSEE. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- (BHAVNESH SAINI) JUDICIAL MEMBER DATED: 27 TH OCTOBER,2016. POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT,DR ASSISTANT REGISTRAR, ITAT/CHD