DCIT, Ambala V. M/s Micro Instrument Co., Ambala Cantt.

ITA 1237/CHANDI/2010

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 1341 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 10-03-2011
• Assessment Year: 2002-2003
• Appeal Filed On: 01-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S KHEMWAL
• Section: 143(3); 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES A CHANDIGARH BEFORE SHRI D.K.SRIVASTAVA, ACCOUNTANT MEMBER AND MS SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO.1237/CHD/2010 ASSESSMENT YEAR: 2002-03 THE DCIT, VS. M/S MICRO INSTRUMENT CO., AMBALA AMBALA CANTT. PAN NO. AAACM8666K (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S.S.KHEMWAL RESPONDENT BY: SHRI SUDHIR SEHGAL ORDER PER SUSHMA CHOWLA, JM THE APPEAL BY THE REVENUE IS AGAINST THE ORDER OF CIT(A), PANCHKULA DATED 18.8.2010 RELATING TO ASSESSMENT YE AR 2002-03 AGAINST THE ORDER PASSED UNDER SECTION 147 R.W.S 143(3) OF THE I.T. ACT. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- 1. WHETHER ON THE FACTS AND CIRCUMSTANCES, THE LD. CIT(A) IS RIGHT IN HOLDING THAT THE DEDUCTION U/S 8 0 IB AMOUNTING TO RS. 10,81,822/- IN RESPECT OF NEW UNIT WAS ADMISSIBLE NOTWITHSTANDING THAT THE CONDITIONS LAID DOWN U/S 80 IB ARE NOT SATISFIED AND NO DEDUCT ION HAS BEEN ALLOWED IN THE ASSESSMENT YEAR 2003-04. 2 2. IT IS PRAYED THAT THE ORDER OF LD. CIT(A) BE SET AS IDE AND THAT OF ASSESSING OFFICER MAY BE RESTORED. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E HAD CLAIMED DEDUCTION U/S 80 IB OF THE ACT IN RESPECT OF NEW UN IT AT 8, INDUSTRIAL AREA, AMBALA CANTT. THE ASSESSEE HAD CLAIMED SIMILAR DEDU CTION FOR THE ASSESSMENT YEAR 2003-04 AND THE SUBSEQUENT YEARS, W HICH WAS DISALLOWED BY THE ASSESSING OFFICER AND UPHELD BY THE CIT(A). THE TRIBUNAL IN ITA NO. 129/CHD/2007 RELATING TO ASSESSMENT YEAR 2003-0 4 VIDE ORDER DATED 31.7.2008 VIDE PARA 8 HELD THE ASSESSEE ELIGIBLE TO THE CLAIM OF DEDUCTION U/S 80 IB OF THE ACT. THE ASSESSING OFFICER HAD RE OPENED THE ASSESSMENT FOR THE YEAR UNDER APPEAL VIDE ISSUE OF NOTICE U/S 148 OF THE ACT AS DEDUCTION U/S 80 IB OF THE ACT WAS CLAIMED BY THE A SSESSEE. THE ASSESSING OFFICER DISALLOWED THE CLAIM DURING THE Y EAR OBSERVING THAT THE DEPARTMENT HAD CHALLENGED THE ORDER OF THE TRIBUNAL BEFORE THE HON'BLE PUNJAB & HARYANA HIGH COURT RELATING TO ASSESSMENT YEAR 2003-04. THE CIT(A) HAS ALLOWED THE CLAIM OF THE ASSESSEE FOLLOW ING THE ORDER OF THE TRIBUNAL RELATING TO ASSESSMENT YEAR 2003-04 (SUPRA ))AS NO NEW FACT HAD BEEN BROUGHT ON RECORD. THE RELEVANT PARA 8 OF TH E ORDER OF THE TRIBUNAL (SUPRA) DATED 31.7.2008 IS REPRODUCED UNDER PARA 4 AT PAGES 3 & 4 OF THE APPELLATE ORDER. 4. WE FIND NO INFIRMITY IN THE ORDER OF THE CIT(A) AS THE ISSUE STANDS SETTLED BY THE TRIBUNAL IN ASSESSEES OWN CASE RELA TING TO ASSESSMENT YEAR 2003-04 WHERE THE TRIBUNAL (SUPRA) VIDE ORDER DATE D 31.7.2008 HAD HELD THE ASSESSEE ELIGIBLE FOR THE CLAIM OF DEDUCTION U/ S 80 IB OF THE ACT. THE LD. DR FAILED TO CONTROVERT THE FINDING OF THE CIT( A) THAT THE FACTS OF THE PRESENT CASE ARE IDENTICAL TO THE FACTS IN THE SUCC EEDING YEARS. WE FIND 3 NO MERIT IN THE GROUNDS OF APPELLANT RAISED BY THE REVENUE AND HENCE THE SAME ARE DISMISSED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 23 RD DAY OF MARCH, 2011. SD/- SD/- (D.K.SRIVASTAVA) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 23 RD MARCH, 2011 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR