ACIT, New Delhi V. M/s. Avishkar Engineers, New Delhi

ITA 2788/DEL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3096 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 6 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 16-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHIMA NEB
• Assessee Lawyers: P K CHADHA
• Section: 143(3); 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES B : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA.NO.2788/DEL./2016 ASSESSMENT YEAR 2010-2011 ACIT, CIRCLE-34(1), NEW DELHI. VS. M/S. AVISHKAR ENGINEERS, BG-7, EAST SHALIMAR BAGH, NEW DELHI 110 088. PAN AAGFA7391E (APPELLANT) (RESPONDENT) FOR REVENUE: MS. ASHIMA NEB, SR. D.R. FOR ASSESSEE : SHRI P.K. CHADHA, C.A. DATE OF HEARING : 05.12.2017 DATE OF PRONOUNCEMENT : 08.12.2017 ORDER PER BHAVNESH SAINI, J.M. THIS APPEAL BY REVENUE HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-12, NEW DELHI, DATED 29 TH FEBRUARY, 2016, FOR THE A.Y. 2010-2011. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT ASSESSE E-FIRM IS ENGAGED IN THE BUSINESS OF MANUFACTURING OF GAS STO VES AND PARTS. THE ASSESSEE DURING THE YEAR UNDER CONSIDERATION CL AIMED DEDUCTION UNDER SECTION 80IC OF THE ACT WHICH ASSESSEE WAS CL AIMING SINCE A.Y. 2007-2008. IN THE IMMEDIATELY PRECEDING A.Y. I.E., A.Y. 2009-2010 2 ITA.NO.2788/DEL./2016 M/S. AVISHKAR ENGINEERS, NEW DELHI. DEDUCTION UNDER SECTION 80IC OF THE ACT WAS NOT ALL OWED TO THE ASSESSEE. SIMILARLY, IN A.Y. 2008-09 THE ASSESSEE C LAIMED FOR DEDUCTION UNDER SECTION 80IC OF THE ACT WAS ALSO RE JECTED ON THE GROUND THAT ASSESSEE WAS NOT ENGAGED IN ANY MANUFAC TURING ACTIVITY. THE A.O. ISSUED NOTICE UNDER SECTION 133(6) OF THE ACT TO VARIOUS PARTIES FOR VERIFYING THE MANUFACTURING PROCESS OF THE ASSESSEE. THE A.O. AFTER DUE ENQUIRY HELD THAT ASSESSEE IS MERELY ASSEMBLING AND TESTING PROCEDURES UNDERTAKEN IN THE UNIT. THEREFOR E, CLAIM OF ASSESSEE AS MANUFACTURING UNIT WAS REJECTED AND DED UCTION UNDER SECTION 80IC WAS DISALLOWED. 3. THE ASSESSEE CONTENDED BEFORE LD. CIT(A) THAT A SSESSEE MADE CLAIM OF DEDUCTION UNDER SECTION 80IC OF THE A CT IN A.Y. 2007- 08. DEDUCTION UNDER SECTION 80IC OF THE ACT WAS DIS ALLOWED FOR A.YS. 2008-09 AND 2009-10, HOWEVER, THE ITAT, DELHI BENCH VIDE ITS ORDER IN ITA.NO.206/DEL./2012 DATED 10 TH APRIL, 2014, HAS ALLOWED DEDUCTION UNDER SECTION 80IC FOR A.Y. 2008-2009. TH E LD. CIT(A) FOUND THAT IN A.Y. 2008-09, THE LD. CIT(A) ALLOWED DEDUCTION UNDER SECTION 80IC VIDE ORDER DATED 11 TH OCTOBER, 2011. HIS FINDINGS ARE REPRODUCED IN THE ORDER AND THAT THE ITAT, DELHI BE NCH VIDE ORDER DATED 11 TH JULY, 2014 DISMISSED THE DEPARTMENTAL APPEAL FOR A .Y. 3 ITA.NO.2788/DEL./2016 M/S. AVISHKAR ENGINEERS, NEW DELHI. 2008-2009. THE ORDER OF THE TRIBUNAL IS ALSO REPROD UCED IN THE ORDER. THE LD. CIT(A) ALSO NOTED THAT THE APPELLANT HAS TR ANSACTIONS WITH ALL THESE PARTIES DURING A.YS. 2009-10 AND 2011-12 ALSO IN WHICH A.O. HAS ACCEPTED THE PURCHASES FROM THESE PARTIES. THER EFORE, THESE PARTIES ARE EXISTING. THE LD. CIT(A) ACCORDINGLY, S ET ASIDE THE ORDER OF THE A.O. AND DIRECTED THE A.O. TO ALLOW DEDUCTION U NDER SECTION 80IC OF THE ACT TO THE ASSESSEE. 4. AFTER CONSIDERING THE RIVAL CONTENTIONS, WE DO NOT FIND ANY MERIT IN THE DEPARTMENTAL APPEAL. THE LEARNED COUNS EL FOR THE ASSESSEE, AT THE OUTSET, SUBMITTED THAT IN A.YS. 20 08-09 AND 2009- 2010, THE LD. CIT(A) HAS ALLOWED DEDUCTION UNDER SE CTION 80IC OF THE ACT ON THE SAME FACTS ON WHICH THE TRIBUNAL DISMISS ED THE APPEAL OF THE REVENUE VIDE ORDER DATED 11 TH JULY, 2014 AND 9 TH AUGUST, 2016. COPIES OF THE ORDERS OF THE TRIBUNAL ARE ON RECORD. LEARNED COUNSEL FOR THE ASSESSEE ALSO SUBMITTED THAT IN A.Y. 2014-2 015, A.O. HAS ALLOWED DEDUCTION UNDER SECTION 80IC TO THE ASSESSE E VIDE ORDER DATED 16 TH DECEMBER, 2016 UNDER SECTION 143(3) OF THE I.T. AC T. COPY OF THE ORDER IS PRODUCED ON RECORD. THESE FACTS CLE ARLY SUPPORT THE FINDINGS OF THE LD. CIT(A) THAT ASSESSEE WAS ENGAGE D IN MANUFACTURING PROCESS AND THUS, WAS ENTITLED FOR DE DUCTION UNDER 4 ITA.NO.2788/DEL./2016 M/S. AVISHKAR ENGINEERS, NEW DELHI. SECTION 80IC OF THE ACT. THE ISSUE IS ALSO COVERED IN FAVOUR OF THE ASSESSEE BY ORDER OF ITAT, DELHI BENCH IN A.YS. 200 8-09 AND 2009- 10 IN WHICH LD. CIT(A) ALLOWED THE SAME CLAIM OF AS SESSEE UNDER SECTION 80IC OF THE ACT AND DEPARTMENTAL APPEALS HA VE BEEN DISMISSED. NO INFIRMITY HAS BEEN POINTED OUT IN THE ORDER OF THE LD. CIT(A). THEREFORE, THE DEPARTMENTAL APPEAL STANDS D ISMISSED. 5. IN THE RESULT, APPEAL OF THE DEPARTMENT DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (PRASHANT MAHARISHI) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DELHI, DATED 08 TH DECEMBER, 2017 VBP/- COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT B BENCH, DELHI 6. GUARD FILE. //BY ORDER// ASST. REGISTRAR : ITAT DELHI BENCHES DELHI.