M/s. BVM Engineering Works, Roorkee V. ITO, Roorkee

ITA 4313/DEL/2011

• Counselvise Citation: 431320114 RSA 2011
• Duration Of Justice: 10 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 07-08-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 29-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATPAL SINGH
• Assessee Lawyers: HEMANT ARORA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC: NEW DELHI BEFORE SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER ITA NO. 4313/DEL/2011 ASSESSMENT YEAR: 2007-2008 BVM ENGINEERING WORKS, C/O A.L. ARORA & ASSOCIATES, 30, CIVIL LINES, ROORKEE. PAN NO. AAHFB2973Q VS. ITO, WARD-1, ROORKEE. (APPELLANT) (RESPONDENT) APPELLANT BY : HEMANT ARORA, CA RESPONDENT BY : SATPAL SINGH, SR. DR DATE OF HEARING : 07/08/2012 DATE OF PRONOUNCEMENT : 24/08/2012 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LD. CIT(A) DATED 01/07/2011 FOR A.Y. 2007-08. 2. THE ASSESSEE FIRM IN THE RELEVANT ASSESSMENT YEA R, DERIVED INCOME FROM NUTS AND BOLTS AS WELL AS FROM CARRYING OUT JO B WORKS FOR OTHER CONCERNS. THE ASSESSEE HAD CLAIMED DEDUCTION U/S 8 0IC IN RESPECT OF WHOLE OF THE PROFIT OF BUSINESS. THE ASSESSING OFF ICER DENIED DEDUCTION U/S 80IC, INTER-ALIA, ON FOLLOWING TWO GROUNDS: - I) IN THE CERTIFICATE OF DIC DATED 29/03/05, THE ASSESSEE IS PROVISIONALLY REGISTERED AS AN UNIT TO CARRY OUT FABRICATION WORKS AND THE ITA NO. 4313/D/2011 2 NATURE OF THE FABRICATION WORK IS NOT SPECIFICALLY MENTIONED. II) THE CERTIFICATE DATED08/10/07, GRANTING IT A LICENSE TO UNDERTAKE MANUFACTURING OF M.S. TUBE PLATES, DOES NOT COVER THE ACTIVITIES OF PRECEDING YEARS I.E. THE FY 2006-07 TO WHICH THE ASSESSMENT PROCEEDINGS RELATE. 3. LD. CIT(A) CONFIRMED THE AOS ACTION, INTER-ALIA , OBSERVING IN PARA 5.1 AS UNDER: - 5.1 HOWEVER, THE DENIAL OF CLAIM U/S 80IC OF THE ACT ON THE BASIS OF FACTS BROUGHT OUT IN THE BODY O F THE ASSESSMENT ORDER REGARDING ABSENCE OF MANUFACTURING ACTIVITY IS UPHELD AND THIS APPEAL IS DISMISSED. 4. LD. COUNSEL FOR THE ASSESSEE REFERRED TO PAGE 34 OF PAPER BOOK, WHEREIN ACKNOWLEDGEMENT REGARDING FORM NO. 97 FILED BEFORE THE DISTRICT INDUSTRIES CENTRE, ROORKEE IS CONTAINED IN WHICH TH E DATE OF LICENSE HAS BEEN SHOWN AS 8 TH OCTOBER, 2007. LD. COUNSEL FURTHER REFERRED TO PA GE 33 OF PAPER BOOK, WHEREIN THE DATE OF COMMENCEMENT OF PRODUCTION IN THE SAID FORM WAS SHOWN AS ON 8 TH NOVEMBER, 2005. HE, THEREFORE, SUBMITTED THAT THIS LICENSE WAS ISSUED ON 8 TH OCTOBER, 2007 BUT THE PRODUCTION COMMENCED FROM 8 TH DECEMBER, 2005. HE SUBMITTED THAT LD. CIT(A) HAS NOT CONSIDERED THE ASSESSEES SUBMISSIONS IN THIS R EGARD AND, THEREFORE, THE MATTER MAY BE RESTORED BACK TO THE FILE OF LD. CIT(A) FOR DENOVO CONSIDERATION. LD. COUNSEL FURTHER SUBMITTED THAT IN SUBSEQUENT YEARS THE ASSESSEE HAS BEEN ALLOWED DEDUCTION U/S 80IC. 5. LD. DR RELIED ON THE ORDER OF LOWER REVENUE AUTH ORITIES. 6. I HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PA RTIES AND HAVE PERUSED THE RECORD OF THE CASE. ITA NO. 4313/D/2011 3 7. LD. CIT(A) HAS REPRODUCED THE FINDINGS OF AO IN PARA 4 OF HIS ORDER AND HAS CONFIRMED THE SAME IN PARA 5.1 REPRODUCED E ARLIER. THUS, THE ASSESSEES PLEA REGARDING MANUFACTURING ACTIVITIES BEING COMMENCED FROM 8 TH NOVEMBER, 2005 HAVE NOT BEEN CONSIDERED BY LD. CIT (A). 8. I, THEREFORE, SET ASIDE THE ORDER OF LD. CIT(A) AND RESTORE THE MATTER BACK TO THE FILE OF LD. CIT(A) TO EXAMINE THE ASSES SES CONTENTION AND RECORD A FINDING ON THE SAME. 9. IN THE RESULT, THE ASSESSES APPEAL IS ALLOWED F OR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 24.08.2012 SD/- (S.V. MEHROTRA) ACCOUNTANT MEMBER DATED: 24.8.12 *KAVITA COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI. TRUE COPY BY ORDER DEPUTY REGISTRAR