Digital System Inc, Solan V. Ld Income Tax Officer V & P. O., Solan

ITA 454/CHANDI/2016

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3809 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-11-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 29-04-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS.ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 454/CHD/2016 ASSESSMENT YEAR : 2012-13 M/S DIGITAL SYSTEMS INC, VS THE ITO, PLOT NO. 239, HPSIDC, V & PO- BADDI, I.A. BADDI, TEHSIL NALAGARH, DISTT. - SOLAN. DISTT. SOLAN. PAN: AAEFD8241L (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ROHIT KAURA RESPONDENT BY : SHRI SUSHIL KUMAR DATE OF HEARING : 16.11.2016 DATE OF PRONOUNCEMENT : 16.11.2016 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF LD. CIT(APPEALS) SHIMLA DATED 18.02.20 16 FOR ASSESSMENT YEARS 2012-13. 2. THE LD. COUNSEL FOR THE ASSESSEE DID NOT PRESS GROUND NOS. 2 AND 3 OF APPEAL OF THE ASSESSEE. SAM E ARE DISMISSED AS NOT PRESSED. 3. ON GROUND NO. 1, ASSESSEE CHALLENGED THE ORDER O F LD. CIT(APPEALS) IN ALLOWING DEDUCTION UNDER SECTIO N 80IC OF THE INCOME TAX ACT ONLY TO THE EXTENT OF 25 % OF THE PROFIT. 2 4. THE ASSESSEE DERIVED INCOME FROM MANUFACTURING OF ELECTRONICS EQUIPMENTS AND PCB ASSEMBLY AND SALE S THEREOF. AS PER INFORMATION GIVEN IN FORM NO. 10CC B, THE ASSESSEE STARTED ITS BUSINESS ACTIVITY/OPERATIO N ON 29.06.2005 AND INITIAL ASSESSMENT YEAR FOR CLAIM OF DEDUCTION UNDER SECTION 80IC OF THE ACT WAS ASSESSM ENT YEAR 2006-07. THE ASSESSEE HAD ALREADY CLAIMED DEDUCTION UNDER SECTION 80IC OF THE ACT TO THE EXTE NT OF 100% ELIGIBLE PROFIT FOR THE FIVE YEARS PERIOD OF ASSESSMENT YEAR 2006-07 TO ASSESSMENT YEAR 2010-11. THE ASSESSEE IN FINANCIAL YEAR 2010-11, MADE SUBSTANTIAL EXPANSION IN THE PLANT AND MACHINERY AN D CLAIMED DEDUCTION UNDER SECTION 80IC OF THE ACT @ 1 00% FROM ASSESSMENT YEAR 2011-12 RECKONING IT AS THE FI RST YEAR OF DEDUCTION UNDER SECTION 80IC OF THE ACT. TH E ASSESSEE ON THE SAME BASIS CLAIMED 100% DEDUCTION UNDER SECTION 80IC IN ASSESSMENT YEAR UNDER APPEAL AS WELL. THE ASSESSING OFFICER, HOWEVER, RESTRICTED T HE DEDUCTION UNDER SECTION 80-IC OF THE ACT TO 25% OF THE ELIGIBLE PROFITS. THE LD. CIT(APPEALS) FOUND THAT SIMILAR ISSUE HAS ALREADY BEEN ADJUDICATED BY ITAT, CHANDIG ARH BENCH IN THE CASE OF M/S HYCRON ELECTRONICS VS ITO IN ITA 798/CHD/2012 AND OTHER RELATED CASES ( 41 ITR (TRIBUNAL) (CHD) 486) IN WHICH IT WAS HELD THAT ASS ESSEE IS ENTITLED TO ONLY 25% OF THE DEDUCTION DURING THE PRESENT YEAR BECAUSE ASSESSEE HAD ALREADY AVAILED T HE FULL PERIOD OF DEDUCTION @ 100% IN EARLIER FIVE YEA RS. THE APPEAL OF THE ASSESSEE WAS, ACCORDINGLY, DISMIS SED. 3 THE LD. CIT(APPEALS) REPRODUCED THE FINDINGS OF THE TRIBUNAL IN THE CASE OF M/S HYCRON ELECTRONICS (SUP RA) IN THE IMPUGNED ORDER. 5. THE LD. COUNSEL FOR THE ASSESSEE FAIRLY SUBMITTE D THAT ISSUE IS COVERED AGAINST THE ASSESSEE BY ORDER OF ITAT CHANDIGARH BENCH IN THE CASE OF M/S HYCRON ELECTRONICS (SUPRA). FOLLOWING THE REASONS FOR THE SAME, WE DISMISS THIS GROUND OF APPEAL OF THE ASSESSEE. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- ( ANNAPURNA GUPTA) (BHAVNESH SAINI ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 16 TH NOVEMBER, 2016. POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT,DR ASSISTANT REGISTRAR, ITAT/CHD