M/s Friends Alloys, Chandigarh V. ITO, Chandigarh

ITA 1250/CHANDI/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8339 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Next Hearing Date: 07-02-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 01-12-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS.ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NOS. 1250 & 1251/CHD/2016 A.Y : 2010-11 & 2012-13 M/S FRIENDS ALLOYS, VS THE ITO, HOUSE NO. 2906/1, WARD 4(1), SECTOR 37-C, CHANDIGARH. CHANDIGARH. PAN NO. : AABFF1623P (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ATUL GOYAL RESPONDENT BY : SHRI MANJIT SINGH, DR DATE OF HEARING : 07.02.2017 DATE OF PRONOUNCEMENT : 07.02.2017 O R D E R PER BHAVNESH SAINI,JM BOTH THE APPEALS BY THE SAME ASSESSEES ARE DIRECTED AGAINST DIFFERENT ORDERS OF LD. CIT(APPEALS)-2, CHA NDIGARH DATED 21.09.2016 FOR ASSESSMENT YEAR 2010-11 AND 20 12-13 CHALLENGING THE ORDER OF LD. CIT(APPEALS) IN UPHOLD ING THE DISALLOWANCE OF DEDUCTION CLAIMED BY THE ASSESSEE U NDER SECTION 80IC OF INCOME TAX ACT. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT ASSESSEE HAD CLAIMED DEDUCTIONS UNDER SECTION 80IC OF THE ACT IN BOTH THE ASSESSMENT YEARS UNDER APPEAL @ 100% OF THE ELI GIBLE PROFITS. IN THIS CASE, THE INDUSTRIAL UNDERTAKING OF THE ASSESSEE COMMENCED OPERATION/ACTIVITY IN AUGUST,200 4 AND THE INITIAL ASSESSMENT YEAR IS 2005-06. THE ASSESS EE HAS 2 CLAIMED 100% DEDUCTION FROM THE PROFITS DURING FIRS T FIVE ASSESSMENT YEARS. IN THE YEAR UNDER CONSIDERATION I.E. 6 TH YEAR AND 8 TH YEAR FROM THE COMMENCEMENT OF THE PRODUCTION, ASSESSEE HAD AGAIN CLAIMED DEDUCTION UN DER SECTION 80IC OF THE ACT @ 100% FROM ELIGIBLE PROFIT S CLAIMING THAT SUBSTANTIAL EXPANSION OF THE UNDERTAK ING WAS CARRIED OUT DURING THE ASSESSMENT YEAR 2010-11. T HE ASSESSING OFFICER, CONSIDERING THIS ISSUE IN DETAIL , RESTRICTED THE CLAIM OF DEDUCTION TO THE EXTENT OF 25% IN THE ASSESSMENT YEAR UNDER APPEALS BEING 6 TH AND 8 TH ASSESSMENT YEAR FROM THE INITIAL ASSESSMENT YEAR 20 05-06. 4. THE LD. CIT(APPEALS) NOTED THAT THE ISSUE IS COV ERED AGAINST THE ASSESSEE BY ORDER OF ITAT CHANDIGARH BE NCH IN THE CASE OF M/S HYCRON ELECTRONICS VS ITO ( REPORTE D IN 41 ITR (CHD) 486 IN WHICH IT WAS HELD THAT, ASSESSEE IS ENTITLED TO ONLY 25% OF THE DEDUCTION DURING THE PR ESENT YEAR BECAUSE ASSESSEE HAD ALREADY AVAILED THE PERIO D OF FULL DEDUCTION @ 100% IN EARLIER FIVE YEARS I.E. FR OM ASSESSMENT YEARS 2004-05 TO 2008-09. THE LD. CIT(APPEALS) REPRODUCED THE ORDER OF THE TRIBUNAL I N THE IMPUGNED ORDERS. 5. THE LD. CIT(APPEALS) FOLLOWING THE ORDER OF THE TRIBUNAL IN THE ABOVE CASE, CONFIRMED THE ORDER OF THE ASSESSING OFFICER RESTRICTING THE CLAIM OF DEDUCTIO N UNDER SECTION 80IC OF THE ACT @ 25% IN THE RELEVANT ASSES SMENT YEARS. APPEALS OF THE ASSESSEE WERE, ACCORDINGLY DI SMISSED. 3 6. THE LD. REPRESENTATIVES OF BOTH THE PARTIES SUBM ITTED THAT ISSUE IS COVERED AGAINST THE ASSESSEE BY ORDER OF ITAT CHANDIGARH BENCH IN THE CASE OF M/S HYCRON ELECTRON ICS (SUPRA). NO INFIRMITY IN THE ORDER OF LD. CIT(APPE ALS) HAVE BEEN POINTED OUT. BOTH THE APPEALS OF THE ASSESSEE ARE, ACCORDINGLY, DISMISSED. 7. IN THE RESULT, BOTH THE APPEALS OF ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- ( ANNAPURNA GUPTA) (BHAVNES H SAINI) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED : 7 TH FEBRUARY,2017. POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT,DR 5. ASSISTANT REGISTRAR, ITAT CHANDIGARH