Dishant Goel, Gurugram V. DCIT, Circle-1(1), Gurgaon

ITA 4100/DEL/2018

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 2004 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-06-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 29-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LALIT KISHORE
• Assessee Lawyers: RAHUL CHAURASIA
• Keywords: Depreciation; Salary income
• Section: 80IC; 80IC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member Sh. Yogesh Kumar US, Judicial Member ITA No. 4100/Del/2018 : Asstt. Year : 2014-15 Dishant Goel, B2-802, Sahara Grace Apartments, M.G. Road, Chakkarpur, Gurgoan Vs DCIT, Circle-1(1), Gurgaon (APPELLANT) (RESPONDENT) PAN No. AKGPG8290G Assessee by : Sh. Ashwani Kumar, CA & Sh. Rahul Chaurasia, CA Revenue by : Sh. Lalit Kishore, Sr. DR Date of Hearing: 25.05.2022 Date of Pronouncement: 29.06.2022 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the assessee against the order of the ld. CIT(A)-2, New Delhi dated 16.03.2018. 2. The assessee has derived income from salary, income from business & profession, income from house property and income from other sources. 3. The assessee has also claimed deduction u/s 80IC of the Income Tax Act, 1961 amounting to Rs.98,00,138/- as fifth year of operations of business and profession in the name of proprietorship concern “Ruchipack Industries” which is carrying its business in District Nalagarh in the state of Himachal Pradesh. During the assessment proceedings, the claim of ITA No. 4100/Del/2018 Dishant Goel 2 deduction u/s 80-IC of the Act in respect of profits from business of Ruchipack Industries has been examined. The Assessing Officer held that the assessee on one-side the assessee has shown purchases of Rs.1,63,60,892/- made during the year and on the other side the assessee was withdrawing his capital from the business because of which there was a negative balance of Rs.37,49,938/- in the capital Account as on.31.03.2014 of M/s. Ruchipack Industries. It was held that the assessee could not carry out business in coming years when there is no capital left, for carrying out the business. It was held that the assessee has made related party transactions between Ruchipack Industries and its other concern including the firm Smartpack from which the purchases of Rs. 1,54,443/- and of Rs. 16,05,581/- from another related concern Flasto Pack Industries. The AO based on the statement of the Manager held that the assessee failed to maintain separate books of accounts in respect of the unit for which exemption claimed. The AO held that there has been diversion of funds of Rs.1.25 Cr. and the assessee is in the process of closing down manufacturing activities for which he is claiming the deduction u/s 80IC. 4. The ld. CIT(A) confirmed the order holding that lorry receipts have not been shown, no sales tax return have been produced and there was no NOC from the fire department for the year under appeal. 5. Before us, the assessee submitted computation of income, copy of the Tax Audit Report, Form 10CCB, copy of the Assessment Order for the year 2012-13, copy of the order for the A.Y. 2013-14 wherein the claim of the assessee has been ITA No. 4100/Del/2018 Dishant Goel 3 allowed. Further, for the A.Y. 2015-16, the case has not been taken up for scrutiny and the deduction claimed by the assessee has been summarily allowed. The certificate of commencement of production by the Department of Industries, copy of reply dated 23.12.2016, copy of Form 1 for 2013-14 by Department of Industries, copy of order sheet by Deputy Director (Factories) and Factory Act and Registration Certificate, copy of certificate by Assistant Engineer, Himachal Pradesh State Electricity Board, copy of certificate by Director of Fire Services, copy of consent to operate by HP State Pollution Control Board and Tin registration certificate, copy of lorry receipts from various transport unions, copy of goods & service tax registration certificate, Sales Tax Return for the month of June, 2017 and depreciation chart of missionary for the A.Y. 2015-16, 2016-17 and 2017-18 have been perused. Hence, we hold that the rationale of the Assessing Officer for disallowing the deduction claimed u/s 80IC cannot be affirmed. 6. In the result, the appeal of the assessee is allowed. Order Pronounced in the Open Court on 29/06/2022. Sd/- Sd/- (Yogesh Kumar US) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: /06/2022 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR