DCIT, Parwanoo V. M/s Lyon DC, Solan

ITA 1023/CHANDI/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 8931 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 28-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S K MITTAL
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA NO. 1023/CHD/2016 ASSESSMENT YEAR: 2010-11 THE DCIT, VS M/S LYON DC, CIRCLE, PLOT NO. 49, SECTOR-5, PARWANOO. PARWANOO, TEH-KASAULI, DISTT. SOLAN (HP). PAN: AABFL8891P (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SURINDER BABBA R RESPONDENT BY : SHRI S.K.MITTAL, DR DATE OF HEARING : 07.12.2016 DATE OF PRONOUNCEMENT : 08.12.2016 O R D E R THIS APPEAL BY REVENUE HAS BEEN DIRECTED AGAINST THE ORDER OF LD. CIT(APPEALS), SHIMLA DATED 14.07.2 016 FOR ASSESSMENT YEAR 2010-2011 CHALLENGING THE DELET ION OF PENALTY UNDER SECTION 271(1)(C) OF THE INCOME TA X ACT. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT ASSESSEE CLAIMED 100% DEDUCTION UNDER SECTION 80IC OF THE AC T FOR FIVE YEARS PERIOD STARTING FROM ASSESSMENT YEAR 2005-06 TO 2009-10 AND CLAIM HAVE BEEN ALLOWED. IN ASSESSMENT YEAR UNDER APPEAL I.E. 2010-11, IT BEING THE SIXTH YEAR OF CLAIM OF DEDUCTION UNDER SECTION 80IC OF 2 THE ACT, THE AUTHORITIES BELOW RESTRICTED THE CLAIM OF ASSESSEE FOR DEDUCTION UNDER SECTION 80IC OF THE AC T TO 25% AGAINST CLAIM OF 100%. THE APPEAL OF THE ASSESS EE HAS BEEN DISMISSED BY LD. CIT(APPEALS) AS WELL AS B Y THE TRIBUNAL. IN THE BACKGROUND OF THESE FACTS, THE ASSESSING OFFICER LEVIED THE PENALTY UNDER SECTION 271(1)(C) OF THE ACT AGAINST THE ASSESSEE WHICH HAV E BEEN CANCELLED BY THE LD. CIT(APPEALS). THE LD. CIT(APPEALS) NOTED THAT THE IDENTICAL ISSUE OF LEVY OF PENALTY HAVE BEEN CONSIDERED BY ITAT CHANDIGARH BEN CH IN THE CASE OF M/S HYCRON ELECTRONICS VS ITO IN ITA NO. 326/2015 FOR ASSESSMENT YEAR 2009-10 DATED 08.10.2015 AND PENALTY HAS BEEN CANCELLED ON IDENTI CAL FACTS. THE ORDER IS REPRODUCED IN THE IMPUGNED ORD ER. IT WAS, THEREFORE, FOUND THAT ISSUE IS COVERED IN F AVOUR OF THE ASSESSEE BY ORDER OF ITAT CHANDIGARH BENCH A ND PENALTY WAS CANCELLED AND APPEAL OF THE ASSESSEE HA VE BEEN ALLOWED. 3. AFTER CONSIDERING RIVAL SUBMISSIONS, I AM OF THE VIEW NO INTERFERENCE IS CALLED FOR IN THE MATTER. THE ITAT CHANDIGARH BENCH IN THE CASE OF M/S HYCRON ELECTRONICS (SUPRA) CONSIDERED THE IDENTICAL ISSUE OF LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE ACT ON CL AIM OF DEDUCTION UNDER SECTION 80IC OF THE ACT IN WHICH DEDUCTION CLAIMED @ 100% WAS REDUCED TO 25% BY THE AUTHORITIES BELOW AND CANCELLED THE PENALTY. THE I SSUE IS, THEREFORE, COVERED IN FAVOUR OF THE ASSESSEE BY ORDER 3 OF ITAT CHANDIGARH BENCH IN THE CASE OF M/S HYCRON ELECTRONICS (SUPRA). NO INFIRMITY HAVE BEEN POINTE D OUT IN THE ORDER OF LD. CIT(APPEALS) IN FOLLOWING THE O RDER OF TRIBUNAL FOR CANCELING THE PENALTY. 4. IN THE RESULT, THE DEPARTMENTAL APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- (BHAVNESH SAINI) JUDICIAL MEMBER DATED: 8 TH DECEMBER,2016. POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT,DR ASSISTANT REGISTRAR, ITAT/CHD