DCIT, Circle, Parwanoo V. M/s Aerowin International, Baddi

ITA 1345/CHANDI/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5166 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 08-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GULSHAN RAJ

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH A, CHANDIGARH BEFORE MS. DIVA SINGH, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 1345/CHD/2017 ASSESSMENT YEAR: 2012-13 THE DCIT, VS M/S AEROWIN INTERNATIONAL, CIRCLE, VILLAGE-KATHA, BADDI PARWANOO. DISTT. SOLAN (HP). PAN NO. : AAIFA8458N (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI GULSHAN RAJ, CIT-DR RESPONDENT BY : SHRI MANOJ KUMAR DATE OF HEARING : 15.01.2018 DATE OF PRONOUNCEMENT : 20.03.2018 ORDER PER DIVA SINGH,JM THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE ASSA ILING THE CORRECTNESS OF THE ORDER DATED 15.07.2017 OF CIT(A) SHIMLA (HP) PERTAINING TO 2012-13 ASSESSMENT YEAR ON THE FOLLOWING GROUND : ON THE FACTS AND IN THE CIRCUMSTANCES, THE LD. CIT( A) HAS ERRED IN DELETING THE PENALTY IMPOSED U/S 271(L)(C) IGNORING THE FACT THAT THE AS SESSEE WAS NOT ELIGIBLE FOR DEDUCTION @100% AND ESCAPED HIS INCOME FROM TAX WILLFULLY. 2. THE LD. CIT-DR RELIES UPON THE PENALTY ORDER. THE AUTH ORIZED REPRESENTATIVE OF THE ASSESSEE, ON THE OTHER HAND, RELIES UPON THE IMPUGNED ORDER. 2.1 THE RELEVANT FACTS OF THE CASE ARE THAT ASSESSEE FIRM ENGAGED IN MANUFACTURING OF ELECTRICAL FANS CLAIMED 100% DEDUCTION OF ELIGIB LE PROFITS U/S 80IC FROM THE SAID MANUFACTURING ACTIVITY. THE CLAIM WA S RESTRICTED TO 25% BY THE AO IN THE QUANTUM PROCEEDINGS AS THE YEAR UNDER CONSIDERATION WAS CONSIDERED TO BE 7 TH YEAR AND THE CLAIM OF HAVING CARRIED OUT SUBSTANTIAL EXPANSION IN 2012-13 ASSESSMENT YEAR I.E. THE YEAR UNDER CONSIDERATION FOR CLAIMING 100% DEDUCTION OF ELIGIBLE PROFITS WAS REJECT ED BY THE AO. AS A RESULT OF THIS, PENALTY PROCEEDINGS WERE INIT IATED AND RELYING UPON THE FACT THAT THE CLAIM OF DEDUCTION U/S 80IC FROM 1 00% STOOD REDUCED TO 25%. THE AO HELD THAT THE ASSESSEE WAS HE LD LIABLE TO PAY PENALTY @ 100% OF THE TAX SOUGHT TO BE EVADED U/S 271 (1)(C) OF THE ACT. THE CIT(A) IN APPEAL QUASHED THE PENALTY RELYING UPON THE DEC ISION OF THE ITAT ITA 1345/CHD/2017 A.Y. 2012-13 PAGE 2 OF 2 IN ITA NO. 326/CHD/2015 IN THE CASE OF M/S HYCRON ELECTR ONICS VS ITO WHEREIN RELYING UPON THE DECISION OF THE APEX COURT IN TH E CASE OF CIT VS RELIANCE PETROPRODUCTS 322 ITR 518 (S.C.) IT WAS HELD THAT IT COULD NOT BE CONSTRUED THAT THE ASSESSEE FURNISHED INACCURATE PARTI CULARS IN THE PECULIAR FACTS OF THE PRESENT CASE 3. WE FIND THAT IN THE LIGHT OF THE JUDGEMENT OF THE JURISD ICTIONAL HIGH COURT IN ORDER DATED 28.11.2017 IN THE CASE OF M/S STOVE CRAFT INDIA VERSUS CIT-V AND OTHERS IN ITA 20 TO 24/2015 WHEREIN IT HAS BEEN HELD THAT EVEN IN CASES WHERE SUBSTANTIAL EXPANSION HAS BEEN CARRIED OUT, DEDUCTION U/S 80IC CANNOT BE RESTRICTED TO 25%. ACCORD INGLY, IN VIEW OF THE STATED POSITION OF LAW ON THE MERITS OF THE ADDITION ITSELF, WE FIND NO GOOD REASON TO INTERFERE WITH THE CONCLUSION ARRIVED AT IN THE IMPUGNED ORDER. THE DEPARTMENTAL APPEAL, ACCORDINGLY IS DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH MARCH,2018. SD/- SD/- (ANNAPURNA GUPTA) (DIVA SINGH) ACCOUNTANT MEMBER 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.