M/s Park Pharmaceuticals, Solan V. DCIT, Parwanoo

ITA 523/CHANDI/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 8977 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 06-05-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S K MITTAL

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. 523/CHD/2016 ASSESSMENT YEAR : 2012-13 M/S PARK PHARMACEUTICALS, VS THE DCIT, VILLAGE - KALLUJHANDA, CIRCLE, TEHSIL KASAULI, PARWANOO. DISTT. SOLAN (HP). PAN: AAJFP3473H (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI S.K.MITTAL, DR DATE OF HEARING : 30.11.2016 DATE OF PRONOUNCEMENT : 30.11.2016 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 12.02.2 016 FOR ASSESSMENT YEAR 2012-13, CHALLENGING THE ORDER OF L D. CIT(APPEALS) IN NOT ALLOWING 100% DEDUCTION BY REST RICTING DEDUCTION UNDER SECTION 80IC @ 25% AND ALSO CHALLEN GED THE LEVY OF INTEREST UNDER SECTION 234A, B AND C OF THE INCOME TAX ACT. 2. THE ASSESSEE FIRM DERIVES INCOME FROM MANUFACTURING OF DRUGS AND PHARMACEUTICALS. AS PER INFORMATION GIVEN IN FORM NO. 10CCB, THE ASSESSEE 2 STARTED ITS BUSINESS ACTIVITY/OPERATION ON 16.02.20 07 AND INITIAL ASSESSMENT YEAR FOR CLAIM OF DEDUCTION UNDE R SECTION 80IC OF THE INCOME TAX ACT WAS ASSESSMENT Y EAR 2007-08. THE ASSESSEE HAD ALREADY CLAIMED DEDUCTIO N UNDER SECTION 80IC OF THE ACT TO THE EXTENT OF 100% OF THE ELIGIBLE PROFIT FOR THE FIVE YEARS PERIOD OF ASSESS MENT YEAR 2007-08 TO ASSESSMENT YEAR 2011-12. IT WAS NOTICED BY THE ASSESSING OFFICER THAT ASSESSEE FIRM HAD AGAIN CLAIMED 100% DEDUCTION AGAINST ELIGIBLE PROFITS IN ASSESSMENT YEAR UNDER APPEAL WHICH IS SIXTH YEAR OF PRODUCTION OF THE FIRM. THE ASSESSING OFFICER, THE REFORE, HELD THAT ASSESSEE IS ELIGIBLE FOR DEDUCTION UNDER SECTION 80IC OF THE ACT ONLY @ 25% AS AGAINST CLAIM OF 100% MADE BY ASSESSEE AND MADE THE DISALLOWANCE ACCORDIN GLY. 3. THE LD. CIT(APPEALS) NOTED IN THE IMPUGNED ORDE R THAT THIS ISSUE HAS ALREADY BEEN ADJUDICATED UPON B Y ITAT CHANDIGARH BENCH IN THE CASE OF M/S HYCRON ELECTRON ICS VS ITO REPORTED IN 41 ITR (TRIBUNAL) (CHD) 486, THE ORDER IN THIS CASE IS REPRODUCED IN THE IMPUGNED ORDER IN WHICH IT WAS HELD THAT ASSESSEE IS ENTITLED TO ONLY 25% O F DEDUCTION IN THE PRESENT YEAR BECAUSE ASSESSEE HAD ALREADY AVAILED THE PERIOD OF FULL DEDUCTION @ 100% IN EARLIER FIVE YEARS I.E. FROM ASSESSMENT YEAR 2004-0 5 TO 2008-09. THE APPEAL OF THE ASSESSEE WAS, ACCORDING LY, DISMISSED. THE LD. CIT(APPEALS) FOLLOWING THE ORDE R OF THE TRIBUNAL IN THE CASE OF M/S HYCRON ELECTRONICS (SUP RA) DISMISSED THIS GROUND OF APPEAL OF THE ASSESSEE 3 RESTRICTING THE CLAIM OF DEDUCTION UNDER SECTION 80 IC TO 25% ONLY. 3. THE ASSESSEE HAS BEEN NOTIFIED THE DATE OF HEARI NG THROUGH REGISTERED POST, HOWEVER, NONE APPEARED ON BEHALF OF THE ASSESSEE AT THE TIME OF HEARING OF TH E APPEAL. IT, THEREFORE, APPEARS THAT ASSESSEE IS NO MORE INTERESTED IN PROSECUTING THE APPEAL. THE LD. DR CONTENDED THAT ISSUE IS COVERED AGAINST THE ASSESSE E BY ORDER OF ITAT CHANDIGARH BENCH IN THE CASE OF M/S HYCRON ELECTRONICS (SUPRA). 4. ON CONSIDERATION OF THE FACTS OF THE CASE, WE AR E OF THE VIEW ISSUE IS COVERED AGAINST THE ASSESSEE BY O RDER OF ITAT CHANDIGARH BENCH IN THE CASE OF M/S HYCRON ELECTRONICS (SUPRA). SINCE IT IS THE SIXTH YEAR OF ASSESSEE, THEREFORE, ASSESSEE WOULD NOT BE ENTITLED FOR 100% DEDUCTION. THIS GROUND OF APPEAL OF THE ASSESSEE I S ACCORDINGLY, DISMISSED. CHARGING OF INTEREST IS CONSEQUENTIAL AND MANDATORY AND IS THEREFORE, DISMI SSED. 5. 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: 30 TH NOVEMBER,2016. POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT,DR ASSISTANT REGISTRAR, ITAT/CHD