M/s R.R. Lamps, Solan V. DCIT, Parwanoo

ITA 509/CHANDI/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9002 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 05-05-2016
• 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. 509/CHD/2016 ASSESSMENT YEAR: 2012-13 M/S R.R.LAMPS, VS THE DCIT, VILLAGE KIRPALPUR, CIRCLE, P.O. NALAGARH, PARWANOO. DISTT. SOLAN (HP). PAN: AAIFR7427E (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VINEET KRISHAN RESPONDENT BY : SHRI SUSHIL KUMAR,CIT-DR DATE OF HEARING : 24.10.2016 DATE OF PRONOUNCEMENT : 26.10.2016 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 12.02.20 16 FOR ASSESSMENT YEAR 2012-13. 2. WE HAVE HEARD BOTH PARTIES. THE LD. COUNSEL FOR THE ASSESSEE DID NOT PRESS GROUND NOS. 3 AND 4 OF APPEAL OF THE ASSESSEE. SAME ARE DISMISSED BEING N OT PRESSED. 3. GROUND NO. 1 IS GENERAL AND NEED NO ADJUDICATION . 2 4. ON GROUND NO. 2, ASSESSEE CHALLENGED THE ORDERS OF AUTHORITIES BELOW IN RESTRICTING THE DEDUCTION U NDER SECTION 80IC OF THE ACT AT 25% AS AGAINST 100% CLAI MED BY ASSESSEE ON ACCOUNT OF SUBSTANTIAL EXPANSION DON E IN ASSESSMENT YEAR UNDER APPEAL. 5. THE ASSESSEE FIRM DERIVES INCOME FROM MANUFACTURING OF ELECTRONIC LAMPS FOR PHILIP ELECTR ONICS INDIA LTD. THE ASSESSEE STARTED ITS BUSINESS ACTIVITIES/OPERATION IN SEPTEMBER,2006 AND INITIAL ASSESSMENT YEAR FOR CLAIM OF DEDUCTION UNDER SECTIO N 80IC OF THE ACT WAS ASSESSMENT YEAR 2007-08. THE ASSESSEE HAD ALREADY CLAIMED DEDUCTION UNDER SECTIO N 80IC TO THE EXTENT OF 100% ELIGIBLE PROFIT FOR FIVE YEARS PERIOD FROM ASSESSMENT YEAR 2007-08 TO 2011-12. HOWEVER, ASSESSEE CLAIMED AGAIN 100% DEDUCTION UNDE R SECTION 80IC IN ASSESSMENT YEAR UNDER APPEAL 2012-1 3 WHICH IS 6 TH YEAR OF PRODUCTION TO THE ASSESSEE. THE ASSESSING OFFICER, THEREFORE, RESTRICTED THE DEDUCT ION UNDER SECTION 80IC OF THE ACT ONLY @ 25% AS AGAINST CLAIM OF 100% MADE BY ASSESSEE. THE LD. CIT(APPEAL S) NOTED THAT THIS ISSUE IS COVERED AGAINST ASSESSEE B Y ORDER OF ITAT CHANDIGARH BENCH IN THE CASE OF M/S HYCRON ELECTRONICS VS ITO (41 ITR (TRIBUNAL)(CHD) 4 86 IN WHICH IT WAS HELD THAT ASSESSEE IS ENTITLED TO 2 5% OF DEDUCTION DURING THE PRESENT YEAR BECAUSE ASSESSEE HAD ALREADY AVAILED THE PERIOD OF FULL DEDUCTION @ 100% IN 3 EARLIER FIVE YEARS. THE APPEAL OF THE ASSESSEE WAS , ACCORDINGLY, DISMISSED FOLLOWING THE ORDER OF TRIBU NAL. 6. THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THE ISSUE IS COVERED AGAINST THE ASSESSEE BY ORDER OF ITAT CHANDIGARH BENCH IN THE CASE OF M/S HYCRON ELECTRONICS (SUPRA). WE, THEREFORE, FOLLOWING THE ORDER OF THE TRIBUNAL IN THE CASE OF M/S HYCRON ELECTRONI CS (SUPRA) WHICH IS REPRODUCED IN THE IMPUGNED ORDER, DISMISS THE APPEAL OF THE ASSESSEE ON THIS GROUND. 7. THE GROUND NO. 5 IS CHARGING OF INTEREST WHICH I S MANDATORY IN NATURE AND IS ACCORDINGLY, DISMISSED. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- ( ANNAPURNA GUPTA) (BHAVNESH SAIN I) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 26 TH OCTOBER, 2016. POONAM COPY TO: 1 THE APPELLANT 2 THE RESPONDENT 3 THE CIT(A) 4 THE CIT,DR ASSISTANT REGISTRAR, ITAT/CHD