M/s C.R.G. Industries, Baddi V. DCIT, Circle, Parwanoo

ITA 1097/CHANDI/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6671 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-11-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 30-06-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PAWAN KUMAR SHARMA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES, SMC, CHANDIGARH BEFORE MS. DIVA SINGH, JUDICIAL MEMBER ITA NO 1097/CHD/2017 ASSESSMENT YEAR : 2013-14 M/S C.R.G. INDUSTRIES, VS. THE DCIT, C/O CA AJAY KUMAR JAIN, CIRCLE, SCO 80-81, IV FLOOR, PARWANOO. SECTOR 17, CHANDIGARH. PAN NO. AAEFC7147E (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI PAWAN KUMAR SHARMA, SR.DR DATE OF HEARING : 23.10.2017 DATE OF PRONOUNCEMENT : 01.11.2017 ORDER THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE ASSA ILING THE CORRECTNESS OF THE ORDER DATED 25.05.2017 OF LD. CIT (APPE ALS) SHIMLA PERTAINING TO 2013-14 ASSESSMENT YEAR ON THE FOLLOWING GROUNDS : 1. THAT THE LEARNED COMMISSIONER OF INCOME TAX (AP PEALS) HAS ERRED BY NOT ALLOWING DEDUCTION @ 100% OF PROFIT DERIVED FROM MANUFACTURI NG ACTIVITIES OF UNIT DESPITE OF FACT THAT THE ASSESSEE HAS UNDERTAKEN SUBSTANTIAL EXPANS ION DURING THE FINANCIAL YEAR 2009-10 . FURTHER THE LD ASSESSING OFFICER HAS WRONGLY DISALL OWED DEDUCTION AMOUNTING TO RS.1282931/-U/S 80IC OF INCOME TAX ACT. 2. THAT THE LEARNED COMMISSIONER OF INCOME TAX HAS ERRED BY UPHOLDING THE ADDITION OF RS446160/- ON ACCOUNT OF INTEREST RECEIVED. 3. THAT THE LEARNED COMMISSIONER OF INCOME TAX HAS ERRED BY UPHOLDING THE ADDITION OF 28000/- ON ACCOUNT OF DISALLOWANCE OF INTEREST UNDE R SECTION 36(L)(III) OF ACT 2. AT THE TIME OF HEARING, AN ADJOURNMENT APPLICATION WAS PLACED ON RECORD STATING THAT THE APPEAL HAS BEEN HEARD BY THE HON'BLE HIGH COURT AND ORDER IS AWAITED. THE LD. SR.DR RELYING UPON THE ORDER SU BMITTED THAT THE ISSUE IS COVERED IN FAVOUR OF THE REVENUE BY THE DECISION OF THE ITAT IN THE CASE OF HYCRON ELECTRONICS & ORS. GROUP CASES IN ITA 37 4/CHD/2014 PERTAINING TO 2010-11 ASSESSMENT YEAR WHICH ORDER SINCE HAS NOT BEEN UPSET AND THUS AS ON DATE STILL PREVAILS MAY BE FOLLOWED. IT WAS HIS SUBMISSION THAT THE YEAR UNDER CONSIDERATION IN THE CASE OF THE ASSESSE E IS THE 9 TH YEAR OF PRODUCTION. A PASS OVER WAS GIVEN IN THE CIRCUMSTANCES REQUIRING THE PERSON PRESENT IN SUPPORT OF THE APPLICATION TO SUBMIT AS TO ON WHICH DATE, THE ITA 1097/CHD/2017 A.Y. 2013-14 PAGE 2 OF 2 HEARING AS PER HIS SUBMISSION HAS CONCLUDED. AFTER THE P ASS OVER, WHEN THE APPEAL WAS CALLED OUT FOR HEARING, NO ONE WAS PRESENT. 3. THE LD. SR.DR REFERRING TO THE RECORD SUBMITTED THAT T HE APPEAL CAN BE DECIDED. THE RECORD SHOWS THAT THE ASSESSEE FIRM WAS EN GAGED IN MANUFACTURING AND SUPPLY OF RAILWAY COACH COMPONENTS, CLA IMED 100% DEDUCTION OF ITS ELIGIBLE PROFIT U/S 80IC. CONSIDERING THE FACT THAT 100% DEDUCTION FOR THE PERIOD FROM 2005-06 TO 2009-10 WAS CLA IMED AND ALLOWED, THE AO RESTRICTED THE CLAIM TO 25% OF ELIGIBLE PROFITS IN THE YEAR UNDER CONSIDERATION. THE CIT(A), HAS UPHELD THE ACTION RELYING UPO N THE DECISION OF THE ITAT DATED 27.05.2015 IN THE CASE OF HYCRON ELECTRO NICS IN ITA 798/CHD/2012. IN THE ABSENCE OF ANY CHANGE EITHER IN FA CTS OR LAW, THE APPEAL OF THE ASSESSEE FOLLOWING THE PRECEDENT IS DISMISSED. THE SAID ORDER WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 01.11..2017. SD/- (DIVA SINGH) JUDICIAL MEMBER POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR ASSTT. REGISTRAR ITAT,CHANDIGARH.