DCIT, New Delhi V. M/s Auto Ignition Ltd., New Delhi

ITA 5708/DEL/2015

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 7289 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2011-2012
• Appeal Filed On: 09-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURENDER PAL
• Assessee Lawyers: KISHAN KUM

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES F : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA.NO.5708/DEL./2015 ASSESSMENT YEAR 2011-2012 THE DCIT, CIRCLE - 3(2), ROOM NO.380B, C.R. BLDG., I.P. ESTATE, NEW DELHI 110 002. VS M/S. AUTO IGNITION LTD., N-240, G.K.1, NEW DELHI. PIN 110 048. PAN AAACA5390E (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI SURENDER PAL, SR. D.R. FOR ASSESSEE : SHRI ANIL KUMAR MALHOTRA AND SHRI KISHAN KUMAR GUPTA, CHARTERED ACCOUNTANT DATE OF HEARING : 12.09.2018 DATE OF PRONOUNCEMENT : 0 1 . 1 0.2018 ORDER PER BHAVNESH SAINI, J.M. THIS APPEAL BY REVENUE HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-1, NEW DELHI, DATED 21.07.2015, FOR THE A.Y. 2011-2012, CHALLENGING THE ORDER OF THE LD. CIT(A) IN 2 ITA.NO.5708/DEL./2015 AUTO IGNITION LTD., NEW DELHI. DELETING THE DISALLOWANCE MADE BY THE A.O. UNDER SECTION 80IC OF RS.1,64,63,311/-. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT ASSESSEE- COMPANY IS ENGAGED IN THE MANUFACTURING OF AUTO ELECTRICAL PARTS VIZ., STARTER MOTOR, ALTERNATOR, DYNAMOS, SOLENOID SWITCHES AND OTHER AUTO ELECTRICAL PARTS. THE ASSESSEE HAS ITS UNIT AT FARIDABAD AS WELL AS PANT NAGAR. A SURVEY WAS CONDUCTED AT THE BUSINESS PREMISES OF THE ASSESSEE-COMPANY AT FARIDABAD ON 15.02.2010 BY ACIT, CIRCLE FARIDABAD AND AT PANT NAGAR, RUDRAPUR DISTRICT, UDHAM SINGH NAGAR. IT WAS OBSERVED DURING THE COURSE OF SURVEY OPERATION THAT FINISHED GOODS WERE TRANSFERRED TO ASSESSEE-COMPANYS OTHER UNIT AND NO MANUFACTURING ACTIVITY WERE BEING CARRIED-OUT BY THE ASSESSEE-COMPANY AT PANT NAGAR UNIT. BASED ON THIS REPORT, ASSESSEE-COMPANYS CLAIM OF DEDUCTION UNDER SECTION 80IC WAS REJECTED FOR A.Y. 2008-2009. ASSESSEE-COMPANYS CASE WAS ALSO REOPENED FOR A.YS. 2006-2007 AND 2007-2008 AND DEDUCTION CLAIMED UNDER SECTION 80IC WAS DISALLOWED. 3 ITA.NO.5708/DEL./2015 AUTO IGNITION LTD., NEW DELHI. SIMILARLY, THE DEDUCTION CLAIMED FOR A.YS. 2009-2010 AND 2010-2011 WAS DISALLOWED BY THE A.O. BASED ON THE SAME FINDING RECORDED IN THOSE YEARS, DEDUCTION UNDER SECTION 80IC TO THE EXTENT OF RS.1,64,63,311/- WAS DISALLOWED FOR THIS YEAR ALSO. 2.1. THE ASSESSEE FILED APPEAL BEFORE LD. CIT(A) AND IT WAS CONTENDED THAT DISALLOWANCE MADE IN A.YS. 2006-2007, 2007-2008, 2009-2010 AND 2010-2011 MADE BY THE A.O. HAS BEEN DELETED BY THE LD. CIT(A). IT WAS ALSO CLAIMED THAT THERE IS NO CHANGE IN THE FACTS AND CIRCUMSTANCES OF THE CASE. THE LD. CIT(A) FOUND THAT HE HAS DECIDED ASSESSEES CASE FOR A.Y. 2010-2011 AND ITAT DECIDED ASSESSEES CASE FOR THE A.YS. 2006-2007, 2007-2008, 2008-2009 AND 2009-2010. THE LD. CIT(A) REPRODUCED THE FINDINGS OF CIT(A) IN ASSESSEES OWN CASE FOR THE A.Y. 2010-2011 AS WELL AS THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE AND DELETED THE ADDITION. 3. LEARNED COUNSEL FOR THE ASSESSEE AT THE OUTSET CONTENDED THAT ITAT, DELHI, A-BENCH, IN ASSESSEES OWN CASE 4 ITA.NO.5708/DEL./2015 AUTO IGNITION LTD., NEW DELHI. FOR A.Y. 2010-2011 IN ITA.NO.4488/DEL./2014 VIDE ORDER DATED 14.08.2017 DISMISSED THE DEPARTMENTAL APPEAL ON IDENTICAL GROUND FOLLOWING ITS EARLIER DECISION IN THE CASE OF THE ASSESSEE. THE DEPARTMENTAL APPEAL HAS BEEN DISMISSED. COPY OF THE ORDER IS PLACED ON RECORD AND PROVIDED TO THE LD. D.R. WHO HAS ALSO STATED THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE. 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE ARE OF THE VIEW THAT THE ISSUE IS IDENTICAL AS HAS BEEN CONSIDERED IN PRECEDING ASSESSMENT YEARS IN WHICH THE TRIBUNAL HAS CONFIRMED THE ORDER OF THE LD. CIT(A) IN DELETING THE ADDITION. THE ISSUE IS COVERED BY THE ORDER OF THE TRIBUNAL IN THE CASE OF THE ASSESSEE VIDE ORDER DATED 14.08.2017 (SUPRA). FOLLOWING THE SAME, WE DISMISS THE APPEAL OF THE REVENUE. 5. IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISMISSED. 5 ITA.NO.5708/DEL./2015 AUTO IGNITION LTD., NEW DELHI. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (L.P. SAHU) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DELHI, DATED 01 ST OCTOBER, 2018 VBP/- COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT F BENCH 6. GUARD FILE // BY ORDER // ASST. REGISTRAR : ITAT DELHI BENCHES : DELHI.