M/s V.R. Papercone Industries, Solan V. ITO, Baddi

ITA 1428/CHANDI/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8346 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-02-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 22-12-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92; 80IC; 80IC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA NO. 1428/CHD/2016 ASSESSMENT YEAR: 2013-14 M/S V.R. PAPERCONE IND., VS THE ITO, VILLAGE DAMUWALA, BADDI (H.P.). BADDI, DISTT. SOLAN (HP). PAN: AAGFV1990E (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ASHWANI KUMAR RESPONDENT BY : SHRI S.K.MITTAL, DR DATE OF HEARING : 09.02.2017 DATE OF PRONOUNCEMENT : 09.02.2017 O R D E R THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST T HE ORDER OF LD. CIT(APPEALS) SHIMLA DATED 08.11.2016 F OR ASSESSMENT YEAR 2013-14, CHALLENGING THE ORDER OF L D. CIT(APPEALS) IN DISALLOWING THE CLAIM OF DEDUCTION UNDER SECTION 80IC OF INCOME TAX ACT. 2. THE ASSESSEE STARTED ITS MANUFACTURING ACTIVITY/ OPERATION ON 02.07.2006 AND INITIAL ASSESSMENT YEAR FOR CLAIM OF DEDUCTION UNDER SECTION 80IC OF THE ACT WAS ASSESSM ENT YEAR 2007-08. THE ASSESSEE HAS ALREADY CLAIMED DEDUCTION UNDER SECTION 80IC OF THE ACT TO THE EXTENT OF 100% OF TH E ELIGIBLE PROFIT FOR FIVE YEARS PERIOD STARTING FROM ASSESSM ENT YEAR 2007-08 TO ASSESSMENT YEAR 2011-12. IT WAS NOTICED THAT ASSESSEE FIRM HAS AGAIN CLAIMED 100% DEDUCTION IN 2 ASSESSMENT YEAR WHICH IS 7 TH YEAR OF THE PRODUCTION. THE ASSESSING OFFICER, AFTER DETAILED DISCUSSION, NOTED THAT ASSESSEE IS ENTITLED FOR DEDUCTION UNDER SECTION 80 IC @ 25% AS AGAINST THE CLAIM OF 100% MADE BY THE ASSESSEE. 3. THE LD. CIT(APPEALS) FOUND THAT ISSUE IS ALREADY DECIDED BY ITAT CHANDIGARH BENCH IN THE CASE OF M/S HYCRON ELECTRONICS VS ITO ( REPORTED IN 41 ITR (CHD) 486 I N WHICH IT WAS HELD THAT, ASSESSEE IS ENTITLED TO ONLY 25% OF THE DEDUCTION DURING THE PRESENT YEAR BECAUSE ASSESSEE HAD ALREADY AVAILED THE PERIOD OF FULL DEDUCTION @ 100% IN EARLIER FIVE YEARS I.E. FROM ASSESSMENT YEARS 2004-05 TO 20 08-09. THE LD. CIT(APPEALS) REPRODUCED THE ORDER OF THE TR IBUNAL IN THE IMPUGNED ORDER AND DISMISSED THIS GROUND OF APP EAL OF THE ASSESSEE. 4. FOLLOWING THE ABOVE DECISION, I AM OF THE VIEW T HE ISSUE IS COVERED AGAINST THE ASSESSEE BY ORDER OF ITAT CH ANDIGARH BENCH IN THE CASE OF M/S HYCRON ELECTRONICS (SUPRA) AND THIS FACT IS ADMITTED BY BOTH THE PARTIES DURING THE COU RSE OF HEARING. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- (BHAVNESH SAINI) JUDICIAL MEMBER DATED: 9 TH FEBRUARY, 2017. POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT,DR ASSISTANT REGISTRAR, ITAT/CHD