ACIT, New Delhi V. Shri Bharat Bhushan Jimndal, New Delhi

ITA 1347/DEL/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5666 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 3 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-06-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2011-2012
• Appeal Filed On: 10-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KOUSWANDNA TEWARI
• Keywords: Salary income
• Section: 80C; 142(1)

Judgement Text

1 ITA NO. 13 47/DEL/2016 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: G NEW DELHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIA L MEMBER ITA NO. 1347/DEL/2016 ( ASSESSMENT YEAR: 2011-12) ACIT CIRCLE 36(1), R.NO. 909, BLOCK-E-2, PRATYAKSH KAR BHAWAN, CIVIC CENTRE, MINTO ROAD, NEW DELHI. VS BHARAT BHUSHAN JINDAL B-159, GUJRANWALA TOWN-1, NEW DELHI. PAN NO. AAFPJ4279B APPELLANT RESPONDENT APPELLANT/REVENUE BY SH. KOUSWANDNA TEWARI, SR. DR RESPONDENT/ASSESSEE BY NONE ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER DATED 29.01.2016 PASSED BY THE CIT(A)-12, NEW DELHI FOR AY 2011-12. 2. GROUNDS OF APPEAL ARE AS UNDER: 1. WHETHER THE LD. CIT (A) ON THE FACTS AND CIRCUMSTA NCES OF THE CASE WAS RIGHT IN APPRECIATING THE FACTS OF THE CASE? 2. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT (A) HAS ERRED IN DELETING THE ADDITION OF RS. 1 ,88,63,283/- MADE BY THE AO ON ACCOUNT OF DISALLOWANCE U/S 80IC OF THE I T ACT, 1961? 3. THE APPELLANT RESERVES HIS RIGHT TO ADD, AMEND OR A LTER THE GROUNDS OF APPEAL ON OR BEFORE THE DATE THE APPEAL IS FINALLY HEARD FOR DISPOSAL. DATE OF HEARING 21.06.2018 DATE OF PRONOUNCEMENT 22.06.2018 2 ITA NO. 1347/DEL/2016 3. THE ASSESSEE E-FILED HIS RETURN OF INCOME FOR TH E AY 2011-12 ON 29.09.2011 DECLARING INCOME AT RS. 2,122,160/- IN A DDITION TO THE AGRICULTURAL INCOME OF RS. 7,06,145/- FOR RATE PURP OSES. THE RETURN WAS PROCESSED U/S 143(1) OF THE INCOME TAX ACT, 1961. THE CASE WAS SELECTED FOR SCRUTINY AND NOTICE U/S 143(1) OF THE ACT WAS ISSUE D ON 28.09.2012, WHICH WAS SERVED UPON THE ASSESSEE THROUGH SPEED POST. S TATUTORY NOTICES U/S 143(2) AND 142(1) OF THE ACT WERE ISSUED AND SERVED UPON THE ASSESSEE FROM TIME TO TIME. IN RESPONSE TO THE NOTICES THE CHART ERED ACCOUNTANT/AUTHORIZED REPRESENTATIVE OF THE ASSESSE E ATTENDED THE PROCEEDINGS AND FILED NECESSARY DETAILS. THE ASSES SING OFFICER OBSERVED THAT DURING THE YEAR UNDER CONSIDERATION THE ASSESSEE WA S DIRECTOR IN THE COMPANY M/S RAPID DIAGNOSTIC PVT. LTD. AND M/S ASPE N DIAGNOSTIC PVT. LTD. AND HAS DECLARED SALARY INCOME OF RS. 6 LAKHS AND R S. 3 LAKHS FROM THE SAID COMPANIES RESPECTIVELY. THE ASSESSEE DECLARED RENT AL INCOME OF RS. 8,05,913/- UNDER THE HEAD INCOME FROM HOUSE PROPER TY. THE ASSESSEE DECLARED CAPITAL GAIN FOR RS. 2,99,404/- AND INCOME FROM OTHER SOURCES OF RS. 52,762/-. DURING THE YEAR THE ASSESSEE WAS THE PRO PRIETOR OF M/S ASPEN LABORATORIES BADDER AND DECLARED GROSS TURNOVER OF RS. 6,01,93,265/- AS AGAINST RS. 5,13,38,307/- IN THE LAST YEAR. THE GR OSS PROFIT OF RS. 2,01,01,408/- WAS DECLARED IN THE CURRENT YEAR AS A GAINST RS. 2,01,43,966/- IN THE LAST YEAR. SIMILARLY, THE NET PROFIT OF RS. 1,92,85,799/- WAS DECLARED IN THE CURRENT YEAR AS AGAINST RS. 1,92,11,908/- IN TH E LAST YEAR AGAINST WHICH THE ASSESSEE CLAIMED DEDUCTION OF RS. 1,91,22,723/- U/S 80IC OF THE ACT AND RS. 1 LAKH U/S 80C OF THE INCOME TAX ACT, 1961. TH E ASSESSING OFFICER DISALLOWED THE CLAIM OF DEDUCTION FOR RS. 1,91,22,7 23/- U/S 80IC OF THE ACT. 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER THE ASSE SSEE FILED AN APPEAL BEFORE THE CIT(A). THE CIT (A) PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. 3 ITA NO. 1347/DEL/2016 5. THE LD. DR SUBMITTED THAT THE ASSESSING OFFICER IN THE PRESENT CASE HAS INFORMED THAT IN THE EARLIER ASSESSMENT YEAR FO R 2008-09, 2009-10 AND 2010-11, THE TRIBUNAL DISMISSED THE APPEAL OF THE R EVENUE. 6. DURING THE HEARING, NONE APPEARED FOR THE ASSESS EE DESPITE GIVING NOTICE. THEREFORE, WE ARE PROCEEDING ON THE BASIS OF SUBMISSIONS MADE BEFORE THE CIT(A) AS THE SUBMISSIONS BEFORE US. 7. WE HAVE HEARD THE LD. DR AND IT IS A MATTER OF R ECORD THAT CIT(A) HAS PROCEEDED ON THE FOOTING THAT IN A.YS. 2008-09, 09- 10 AND 2010-11 IDENTICAL ISSUE WAS DECIDED IN FAVOUR OF THE ASSESSEE. THE C IT (A) HELD AS UNDER: 10.7 FACTS OF THE CASE DURING THE YEAR ARE IDENT ICAL TO AY 2008-09, 09- 10 AND 2010-11. THEREFORE, RESPECTFULLY FOLLOWING THE ORDER OF CIT (A) DATED 16.09.2011 FOR AY 2008-09 AND FOR AY 2009-10 AND 2010-11, IT IS HELD THAT DEDUCTION U/S 80IC IS ALLOWABLE TO THE AS SESSEE OF RS. 1,88,63,283/- ON THE NET PROFIT ARISING IN 1 ST , 2 ND AND 3 RD CATEGORY AND, THEREFORE, ADDITION TO THE EXTENT OF WHICH MADE BY THE ASSESSING OFFICER IS DELETED AND DEDUCTION U/S 80IC IS NOT ALLOWABLE ON THE PROFIT ON SALE OF ALP REAGENT KIT, ALT REAGENT KIT AND AST REAGENT KIT (4 TH CATEGORY) AMOUNTING TO RS. 2,60,117/- AND ADDITION MADE BY TH E ASSESSING OFFICER IS UPHELD TO THAT EXTENT. THUS, THE LD. DR COULD NOT CONTROVERT THE FINDINGS GIVEN BY THE CIT(A) THAT THE TRIBUNAL IN EARLIER ASSESSMENT YEARS DISMISSED THE APPEAL OF THE REVENUE. THEREFORE, THE ISSUE IS SQUARELY COVERED BY THE DEC ISION OF THE TRIBUNAL AND THERE IS NO NEED TO INTERFERE WITH THE FINDING OF T HE CIT(A). THE REVENUES APPEAL IS DISMISSED. 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 22.06.2018 SD/- SD/- (R.K. PANDA) (SUCHITRA KAMBL E) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 22.06.2018 *KAVITA ARORA 4 ITA NO. 1347/DEL/2016 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT TRUE COPY ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 21.06.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 21.06.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS 22.6.18 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 22.6.18 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 22.6.18 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 22.6.18 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 22.6 .18 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER