ACIT, Circle, Rohtak V. Micro Turners, Rohtak

ITA 5111/DEL/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9101 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-08-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2014-2015
• Appeal Filed On: 25-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARAMITA M BISWAS
• Section: 80IC; 80IC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E NEW DLEHI BEFORE SHRI O.P. KANT, ACCOUNTANT MEMBER AND SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER ITA NO. 5110 & 5111/DEL/2018 ASSESSMENT YEAR: 2013-14 & 2014-15 A.C.I.T., CIRCLE, VS. MICRO TURNERS, ROHTAK (HARYANA) MAL GODAM ROAD, ROHTAK (HARYANA) PAN : AABFM1796J (APPELLANT) (RESPONDENT) APPELLANT BY : MS. PARAMITA M. BISWAS, CIT/D R RESPONDENT BY: SH. GAUTAM JAIN, ADVOCATE DATE OF HEARING: 09/08/2021 DATE OF ORDER : 09/08/2021 ORDER PER K. NARASIMHA CHARY, J.M. AGGRIEVED BY THE ORDERS DATED 04/05/2018 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS)-ROHTAK ('LD. C IT(A)') IN THE CASES OF MICRO TURNERS (THE ASSESSEE),FOR THE ASSESSMEN T YEARS 2013-14 AND 2014-15, THE REVENUE PREFERRED THESE APPEALS. SINCE THE FACTS INVOLVED AND THE GROUNDS RAISED IN BOTH THE APPEALS ARE SIMI LAR, FOR THE SAKE OF CONVENIENCE, WE DISPOSE OF BOTH THE APPEALS BY WAY OF THIS CONSOLIDATED ORDER AND TAKE THE FACTS INVOLVED IN ITA NO. 5110/D EL/2018 AS LEAD CASE. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUFACTURING AND JOB WORK OF PRECISION TURNED COMPONENTS 2 AND FASTENERS. FOR THE ASSESSMENT YEAR 2013-14, THE ASSESSEE FILED THEIR RETURN OF INCOME ON 30.11.2013 DECLARING INCOME OF RS.12,54,87,250/-. HOWEVER, ASSESSMENT WAS COMPLETE AT AN INCOME OF RS .24,32,23,834/-, MAKING ADDITION OF RS.1,21,45,213/- BY DISALLOWING THE EXPENSES OF TAXABLE UNITS UPON ALLOCATION AND RS.10,55,91,371/- BY REST RICTING THE RATE OF DEDUCTION. 3. WHEN THE ASSESSEE PREFERRED APPEAL, LEARNED CIT( A), WHILE PLACING RELIANCE ON THE ORDERS OF CO-ORDINATE BENCH OF THIS TRIBUNAL FOR THE ASSESSMENT YEARS 2005-06, 2009-10, 2010-11 AND 2011 -12, WHEREIN AN ISSUE SIMILAR TO GROUND NO. 1 WAS INVOLVED, GAVE RE LIEF TO THE ASSESSEE. SIMILARLY, LEARNED CIT(A) GRANTED RELIEF IN RESPECT OF THE ADDITION OF RS.10,55,91,371/- ALSO. CHALLENGING SUCH DELETION, THE REVENUE IS BEFORE US IN THESE APPEALS. 4. IN SO FAR AS THE LEARNED CIT(A) GRANTING RELIEF TO THE ASSESSEE BASING ON THE ORDERS OF THE TRIBUNAL FOR THE ASSESSMENT YE ARS 2005-06 AND 2009- 10 TO 2011-12 IS CONCERNED, IT REMAINS AN ADMITTED FACT THAT THE COORDINATE BENCH OF THIS TRIBUNAL DECIDED SIMILAR I SSUE IN FAVOUR OF THE ASSESSEE AND THE REVENUE DOES NOT DISPUTE THE SAME. IT ALSO REMAINS AN ADMITTED FACT THAT SUBSEQUENTLY ON VERIFICATION, LE ARNED ASSESSING OFFICER FOUND THAT THE ASSESSEE IS MAINTAINING SEPARATE BOO KS OF ACCOUNT. SINCE THIS GROUND REMAINS COVERED BY THE ORDERS OF TRIBUN AL FOR THE EARLIER ASSESSMENT YEARS, THE REVENUE FAIRLY CONCEDES THE P OSITION. CONSEQUENTLY, WE DO NOT FIND ANY ILLEGALITY OR IRREGULARITY IN TH E FINDINGS OF THE LD. CIT(A) AND WHILE UPHOLDING THE SAME, WE DISMISS FIRST GROU ND OF APPEAL. 5. SO FAR AS SECOND GROUND OF APPEAL IS CONCERNED, IT RELATES TO DELETION OF ADDITION OF RS.10,55,91,371/- BY RESTRI CTING THE RATE OF 3 DEDUCTION U/S. 80IC OF THE INCOME-TAX ACT, 1961 FOR PANTNAGAR UNIT FROM 100% TO 25% HOLDING THAT THE BENEFIT OF SUBSTANTIAL EXPANSION IS APPLICABLE FOR THE UNITS ESTABLISHED AFTER 7 TH JUNE, 2003. ON THIS ASPECT, THE ASSESSEE PLACES RELIANCE ON THE DECISION OF HONBLE APEX COURT IN THE CASE OF PCIT VS. ARHAM SOFTRONICS, 412 ITR 623 (SC), WHE REIN IT HAS BEEN HELD THAT IN CASE OF SUBSTANTIAL EXPANSION IS CARRIED OU T AS DEFINED IN CLAUSE (IX) OF SUB-SECTION (8) OF SECTION 80IC BY SUCH AN UNDER TAKING OR ENTERPRISE, WITHIN THE PERIOD OF 10 YEARS, THE SAID PREVIOUS YE AR, IN WHICH THE SUBSTANTIAL EXPANSION IS UNDERTAKEN WOULD BECOME TH E INITIAL ASSESSMENT YEAR AND FROM THAT ASSESSMENT YEAR, THE ASSESSEE SH ALL BE ENTITLED TO 100% DEDUCTION OF THE PROFITS AND GAINS. IN VIEW OF THIS BINDING PRECEDENT OF HONBLE APEX COURT, WE HOLD THAT THE ASSESSEE IS ENTITLED TO CLAIM OF 100% DEDUCTION AND THE LD. CIT(A) RIGHTLY ALLOWED T HE SAME. CONSEQUENTLY, GROUND NO. 2 IS ALSO DISMISSED. ACCORDINGLY, THE AP PEAL OF THE REVENUE FOR THE ASSESSMENT YEAR 2013-14 HAS TO BE DISMISSED. 6. SINCE THE GROUNDS RAISED IN APPEAL FOR THE ASSES SMENT YEAR 2014-15 ARE SUBSTANTIALLY SIMILAR IN THE SAME SET OF FACTS, OUR DECISION IN APPEAL FOR A.Y. 2013-14 SHALL EQUALLY APPLY IN APPEAL OF REVEN UE FOR A.Y. 2014-15 ALSO. 7. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A RE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS THE 9 TH DAY OF AUGUST, 2021 JUST AFTER CONCLUSION OF HEARING ON VIRTUAL MO DE. SD/- SD/- (O.P. KANT) (K. NARSIMHA CHARY ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 09/08/2021