ITO, Rishikesh V. M/s. M.L. Creations, Rishikesh

ITA 109/DEL/2014

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 4220 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 6 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 03-08-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 06-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

ITA NO. 109/DEL/2014 ASST. YEAR 2010-11 M.L. CREATIONS 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E: NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI ANADI N MISHRA, ACCOUNTANT MEMBER ITA NO.:- 109/DEL/2014 ASSESSMENT YEAR: 2010-11 INCOME TAX OFFICER, WARD-1 RISHIKESH VS. M.L. CREATIONS, A-15-17-18, MINI INDUSTRIAL ESTATE, RANIPOKHARI RISHIKESH PAN AAPFM5910L (APPELLANT) (RESPONDENT) O R D E R PER ANADI N MISHRA, A.M. THIS APPEAL FILED BY THE REVENUE DIRECTED AGAINST THE ORDER OF LD.CIT (APPEALS) DEHRADUN DT. 31.10.2013 FOR THE ASSESSME NT YEAR 2010-11 ON THE FOLLOWING GROUNDS :- 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN NO T APPRECIATING THE FACT THAT MANUFACTURING ACTIVITIES UPTO SUCH EXTENT CANNOT BE GENUINELY CARRIED OUT WITH THE HEL P OF SUCH IN INADEQUATE MANPOWER EMPLOYED BY THE ASSESSEE IN COM PARISON TO THE DECLARED RESULTS OF PRODUCTION. 2. THE LD CIT(A) HAS ERRED IN LAW AND ON FACTS TO IGNO RING THE FACTS THAT NEITHER SANCTITY OF BOOKS OF ACCOUNT WER E PROVED NOR DEPARTMENT BY : SHRI U.C. DUBEY, SR. DR ASSESSEE BY: SHRI R.K. GUPTA, CA, SHRI P.S. KASHAP, CA DATE OF HEARING 03/08 /2016 DATE OF PRONOUNCEMENT 05 /08 /2 016 ITA NO. 109/DEL/2014 ASST. YEAR 2010-11 M.L. CREATIONS 2 MANUFACTURING RESULTS WERE IN ORDER TO SUPPORT THE GENUINENESS OF PRODUCTION. 3. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DEL ETING THE ADDITION OF RS. 7,93,41,890/- MADE BY THE AO, ON AC COUNT OF MANUFACTURING ACTIVITIES WHICH WAS NOT FOUND ACTUAL LY CARRIED OUT. 4. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN ALL OWING THE CLAIM OF DEDUCTION U/S 80IC OF THE I.T. ACT, 1961 A GAINST THE PROFIT OCCURRED ON CURRENCY EXCHANGE HOLDING IT A M ERGE AMOUNT. 5. THAT THE ORDER OF THE LD. CIT(A) BE SET ASIDE AND T HAT OF THE AO RESTORED. 2. ALL THE GROUNDS OF APPEAL ARE RELATED TO DISALLO WANCE OF ASSESEES CLAIM U/S 80IC OF I.T. ACT, AMOUNTING TO RS. 7,93,4 1,890/- MADE BY THE AO VIDE ASSTT. ORDER DATED 29.3.2013. AS THE GROUNDS O F APPEAL INTER RELATED ALL THE GROUNDS ARE TAKEN UP TOGETHER FOR THE SAKE OF C ONVENIENCE. 3. ASSESSMENT ORDER DATED 29.3.2013 WAS PASSED BY L D. AO U/S 143(3) OF I.T. ACT. IN THE COURSE OF HEARING THE ASSESSEE WAS REPRESENTED BY LD. AR WHO DREW OUR ATTENTION TO THE FACT THAT THE ISSU E IS COVERED BY DECISION OF ITAT IN THE ASSESSEES OWN CASE FOR ASSTT. YEAR 2009-10 VIDE ORDER DATED 11.11.2014 IN ITA NO. 932/DEL/2013 BY ITAT E BENC H NEW DELHI. LD. DR WAS UNABLE TO DISTINGUISH THE FACTS OF THIS ASSTT. YEAR (2010-11) FROM THE FACTS OF ASSTT. YEAR 2009-10 IN WHICH ITAT HAS ALRE ADY TAKEN A VIEW IN FAVOUR OF THE ASSESSEE. LD. AR OF THE ASSESEE ALSO DREW OUR ATTENTION TO THE FACT THAT DEDUCTION U/S 80IC OF I.T. ACT HAS B EEN ALLOWED BY THE AO IN ITA NO. 109/DEL/2014 ASST. YEAR 2010-11 M.L. CREATIONS 3 SUBSEQUENT ASSESSMENT YEAR 2011-12. THOUGH LD. DR S UPPORTED THE ORDER OF THE LD. AO, HE WAS NOT ABLE TO POINT ANY INFIRMI TY IN THE ORDER OF LD. CIT(A). AS THE ISSUE REGARDING ALLOWABILITY OF DED UCTION U/S 80IC OF I.T. ACT IS COVERED BY THE ORDER OF ITAT IN ASSESSEES OWN C ASE FOR ASSTT. YEAR 2009- 10 WE, RESPECTFULLY FOLLOWING THE PRECEDENT VIDE OR DER DATED 11.11.2014 OF ITAT E BENCH IN ITA NO. 932/DEL/2013 FOR ASSTT. Y EAR 2009-10 UPHOLD THE ORDER OF THE LD. CIT(A). IN THE RESULT APPEAL IS DISMISSED. SD/- SD/- (H.S. SIDHU) (ANADI N MISHRA) JUDICIAL MEMBER ACCOUNTAN T MEMBER DATED: 5 TH AUGUST, 2016. * VEENA* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGI STRAR