ITO, Ward, Baddi V. M/s Alive Healthcare , Baddi

ITA 464/CHANDI/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7556 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 13-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES, SMD, CHANDIGARH BEFORE MS. DIVA SINGH, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO 464/CHD/2018 ASSESSMENT YEAR : 2014-15 THE ITO, VS. M/S ALIVE HEALTHCARE, WARD-BADDI, PLOT NO. 123, HPSIDC, BADDI, (H.P.) DISTT.SOLAN (HP). PAN NO. AANFA7812R (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANJIT SINGH, SR.DR RESPONDENT BY : NONE DATE OF HEARING : 26.06.2018 DATE OF PRONOUNCEMENT : 17.07. 2018 ORDER PER DIVA SINGH THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE ASSAILIN G THE CORRECTNESS OF THE ORDER DATED 17/01/2018 OF CIT(A) SHIM LA PERTAINING TO 201415 ASSESSMENT YEAR ON THE FOLLOWING GROUNDS : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 8,70,978/-- MADE BY THE A.O. BY RESTRICTING THE CLAIM OF THE ASSESSEE TO 25% AS AGAINST THE 100% CLAIM MADE IN THE78 TH YEAR, IGNORING THE FACT THAT UNITS WHICH COMMENCED PRODUCTION AFTER 07.01.2003 CAN'T CARRY O UT MULTIPLE 'SUBSTANTIAL EXPANSION' AS PER PROVISIONS OF SECTION 80-IC OF TH E INCOME TAX ACT AND AS EXPLAINED IN CBDT CIRCULAR NO. 07/2003. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN HOLDING THAT THERE CAN BE MORE THAN ONE 'INITIAL ASSES SMENT YEAR' FOR AVAILING THE DEDUCTION UNDER SECTION 80IC OF THE INCOME TAX ACT. IN OTHER WORDS, THE ASSESSEE CAN FIRST CLAIM DEDUCTION FROM THE INITIAL ASSESSMENT YEAR, B EING THE YEAR OF SETTING UP OF THE INDUSTRIAL UNDERTAKING AND, THEREAFTER, ONCE AGAIN CLAIM THE DEDUCTION FROM ANOTHER INITIAL ASSESSMENT YEAR, BEING THE ASSESSMENT YEAR IN WHICH THE ASSESSEE CARRIES OUT SUBSTANTIAL EXPANSION OF ITS UNDERTAKING. 2. AT THE TIME OF HEARING, NO ONE WAS PRESENT ON BE HALF OF THE ASSESSEE- RESPONDENT. HOWEVER, SINCE APPEAL COULD BE DECIDED ON ME RITS ON THE BASIS OF MATERIAL AVAILABLE ON RECORD, THE LD. DR WAS REQUIRED T O ARGUE. THE RECORD SHOWS THAT THE ISSUE HAD BEEN DECIDED IN FAVOUR OF THE ASSESSEE BY THE CIT(A) RELYING UPON DECISION OF THE JURISDICTIONAL HIGH CO URT IN THE CASE OF M/S STOVEKRAFT INDIA VERSUS CIT REPORTED IN 400 ITR 225 (HP) . 3. THE LD. SR.DR RELIED UPON THE ASSESSMENT ORDER. NO DIS TINGUISHING FACT OR CIRCUMSTANCE WAS BROUGHT TO THE NOTICE OF THE B ENCH. NO CONTRARY DECISION WAS ALSO BROUGHT TO OUR NOTICE TO CANVASS A CONTRARY VIE W. ITA-464/CHD/2018 A.Y. 2014-15 PAGE 2 OF 2 4. THE RELEVANT FACTS OF THE CASE ARE THAT THE ASSESSE E FIRM AT THE RELEVANT POINT OF TIME WAS ENGAGED IN MANUFACTURING OF DIFFE RENT TYPES OF TABLETS, CAPSULES & SYRUPS. DEDUCTION CLAIMED U/S 80IC O F THE ACT TO THE EXTENT OF 100% OF ELIGIBLE PROFITS WAS DECLINED BY THE AO IN T HE YEAR UNDER CONSIDERATION REJECTING THE CLAIM OF HAVING CARRIED OUT SU BSTANTIAL EXPANSION IN 2011-12 ASSESSMENT YEAR ON THE GROUNDS T HAT THE YEAR UNDER CONSIDERATION WAS THE 7 TH YEAR AND THE FIVE YEAR PERIOD FOR CLAIMING SUCH DEDUCTION STOOD EXHAUSTED FROM 2008-09 TO 2012-13 ASSESSMENT YEAR. 4. THE CIT(A) RELYING UPON THE AFORESAID DECISION OF THE JU RISDICTIONAL HIGH COURT, ALLOWED THE APPEAL OF THE ASSESSEE. AGGRIEVED BY THIS THE REVENUE IS IN APPEAL BEFORE THE ITAT. 5. SINCE THE ISSUE IS NO LONGER RE-INTEGRA AND STANDS DE CIDED BY THE JURISDICTIONAL HIGH COURT IN FAVOUR OF THE ASSESSEE, ACCORD INGLY, IN THE ABSENCE OF ANY ARGUMENT DISTINGUISHING EITHER ON FACTS OR POSITION OF LAW, RESPECTFULLY FOLLOWING THE DECISION OF THE HON'BLE HIGH COURT, THE DEPARTMENTAL APPEAL IS DISMISSED. SAID ORDER WAS PRONOUNCE D IN THE OPEN COURT AT THE TIME OF HEARING ITSELF. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 17.07. 2018. SD/- SD/- (ANNAPURNA GUPTA) (DIVA SING H) ACCOUNTANT MEMBER JUDICIAL MEMBER POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR ASSTT. REGISTRAR ITAT,CHANDIGARH.