M/s Sri Sai Print Pack Industries, Solan V. ITO, Baddi

ITA 1462/CHANDI/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8309 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 20-02-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 29-12-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Assessee Lawyers: DEEPINDER SING LA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA NOS. 1462 & 1463/CHD/2016 A.Y. : 2012-13 & 2013-14 M/S SRI SAI PRINT PACK INDUSTIES VS THE ITO, VILLAGE LEHI, P.O. NALAGARH, BADDI (HP). DISTT. SOLAN (HP). PAN: ABJFS7371L (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI DEEPINDER SING LA RESPONDENT BY : SHRI MANJIT SINGH DATE OF HEARING : 20.02.2017 DATE OF PRONOUNCEMENT : 20.02.2017 O R D E R BOTH THE APPEALS BY THE SAME ASSESSEE ARE DIRECTED AGAINST DIFFERENT ORDERS OF LD. CIT(APPEALS) FARIDA BAD DATED 01.11.2016 FOR ASSESSMENT YEAR 2012-13 AND LD . CIT(APPEALS) SHIMLA DATED 08.11.2016 FOR ASSESSMENT YEAR 2013-14 CHALLENGING THE ORDERS OF LD. CIT(APPE ALS) IN UPHOLDING THE ACTION OF THE ASSESSING OFFICER IN DISALLOWING CLAIM OF DEDUCTION UNDER SECTION 80IC O F INCOME TAX ACT. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT ASSESSEE CHALLENGED THE ORDER OF ASSESSING OFFICER BEFORE LD . CIT(APPEALS) RESTRICTING THE CLAIM OF 100% DEDUCTIO N UNDER SECTION 80IC OF THE ACT TO 25% EVEN THOUGH TH E 2 SUBSTANTIAL EXPANSION WAS CARRIED OUT DURING ASSESS MENT YEAR 2012-13. IT IS NOTED IN THE IMPUGNED ORDERS T HAT ASSESSEE STARTED ITS BUSINESS ACTIVITY/OPERATIONS O N 20.12.2006 AND INITIAL ASSESSMENT YEAR FOR CLAIM OF DEDUCTION UNDER SECTION 80IC OF THE ACT WAS ASSESSM ENT YEAR 2007-08. NOW, ON THE BASIS OF SUBSTANTIAL EXP ANSION UNDERTAKEN DURING THE FINANCIAL YEAR 2011-12, THE ASSESSEE FIRM HAS MADE A CLAIM OF 100% DEDUCTION UN DER SECTION 80IC OF THE ACT. ASSESSMENT YEAR 2012-13 I S SIXTH YEAR OF DEDUCTION AND ASSESSMENT YEAR 2013-14 IS SEVENTH YEAR OF THE CLAIM OF DEDUCTION. THE ASSESS ING OFFICER, AFTER DETAILED DISCUSSION, RESTRICTED THE CLAIM OF ASSESSEE TO 25% AS AGAINST 100% CLAIMED BY THE ASSE SSEE. 3. 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 ( REPO RTED IN 41 ITR (CHD) 486 IN WHICH IT WAS HELD THAT, ASSESSEE IS ENTITLED TO ONLY 25% OF THE DEDUCTION DURING THE PRESENT YEAR BECAUSE ASSESSEE HAD ALREADY AVAIL ED THE PERIOD OF FULL DEDUCTION @ 100% IN EARLIER FIVE YEARS I.E. FROM ASSESSMENT YEARS 2004-05 TO 2008-09. THE LD. CIT(APPEALS) REPRODUCED THE FINDINGS OF THE TRIBUNA L IN THIS CASE AND DISMISSED THE APPEALS OF THE ASSESSEE S. 4. LD. REPRESENTATIVES OF BOTH THE PARTIES SUBMITTE D THAT ISSUE IS COVERED AGAINST THE ASSESSEE BY ORDER OF ITAT CHANDIGARH BENCH IN THE CASE OF M/S HYCRON 3 ELECTRONICS (SUPRA). SINCE THE ISSUE IS COVERED AG AINST THE ASSESSEE BY ABOVE JUDGEMENT OF THE TRIBUNAL, THEREFORE, NO INFIRMITY HAVE BEEN POINTED OUT IN TH E ORDER OF LD. CIT(APPEALS) IN FOLLOWING THE ORDER OF THE T RIBUNAL. BOTH THE APPEALS OF THE ASSESSEE HAVE NO MERIT, SAM E ARE ACCORDINGLY, DISMISSED. 5. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- (BHAVNESH SAINI) JUDICIAL MEMBER DATED: 20 TH FEBRUARY,2017. POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT,DR 5. ASSISTANT REGISTRAR, ITAT/CHD