ACIT, New Delhi V. Shri Amit Arora, New Delhi

ITA 6467/DEL/2015

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5178 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 07-12-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: GARGI SETHEE
• Keywords: Business income
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH C : NEW DELHI) BEFORE SHRI R.K.PANDA, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO.6467/DEL./2015 (ASSESSMENT YEAR : 2012-13) ACIT VS AMIT ARORA CIRCLE-40(1), . PROP HYDRO VALV ES, ROOM NO. 1705, SU-74, PITAMPURA E-2 BLOCK NEW DELHI NEW DELHI PAN : AAOPA6367L (APPELLANT) (RESPONDENT) ASSESSEE BY : SMT. GARGI SETHEE, ADV. REVENUE BY : SHRI AMIT KATOCH, SR. DR DATE OF HEARING : 15.01.2019 DATE OF ORDER : 05.02.2019 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : THE APPELLANT, ASSISTANT COMMISSIONR OF INCOM TAX ( HEREINAFTER REFERRED TO AS THE REVENUE) BY FILING THE PRESENT APPEAL SOUGHT TO SET ASIDE THE IMPUGNED ORDER DATED 28.09.2015 PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS)-14, NEW DELHI QUA THE ASSESSMENT YEAR 2012-13 ON THE GROUNDS INTER ALIA T HAT : 1. DELETING THE ADDITION OF RS. 1,53,99,359/- MADE BY THE AO ON ACCOUNT OF DEDUCTION U/S 80IXC OF THE I.T.ACT. ITA NO.6467/DEL./2015 2 2. CONSIDERING THE 6 TH YEAR AS INITIAL YEAR EVEN THOUGH THE LAW PROVIDES FOR ONLY ONE INITIAL A.Y. AND A SI NGLE STREAM OF DEDUCTION FOR 10A.Y.S WITH REFERENCE TO INITIAL A.Y. 3. THE APPELLANT CRAVES THE RIGHT TO ADD, A LTER OR AMEND ANY GROUND OF APPEAL. 2. BRIEFLY STATED THAT FACTS NECESSARY FOR ADJUDI CATION OF THE CONTROVERSY AT HAND ARE : THE ASSESSEE IS INTO THE BUSINESS OF MANUFACTURING AND SALE OF LPG GAS STOVES HAVING MAN UFACTURING UNIT AT VILLAGE DHAGGAR, OLD KASAULI ROAD, SECTOR 4, PAR WANU, HIMACHAL PRADESH. THE ASSESSING OFFICER FRAMED THE ASSESSMEN T U/S 143(3) OF THE ACT BY MAKING DISALLOWANCE OF RS. 1,53,99,359/- AS AGAINST CLAIM OF THE ASSESSEE OF RS. 2,05,32,439/- BY RESTRICTING TH E SAME TO RS. 51,33,120/-. 3. ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT (A) BY WAY OF FILING THE APPEAL WHO HAS DELETED THE ADDITION BY ALLOWING THE SAME. FEELING AGGRIEVED THE REVENUE HAS COME UP BEF ORE THE TRIBUNAL BY WAY OF FILING THE PRESENT APPEAL. 4. WE HAVE HEARD THE LD. AUTHORIZED REPRESENTATIVES OF THE PARTIES TO THE APPEAL, GONE THROUGH THE DOCUMENTS R ELIED UPON AND ORDERS PASSED BY THE REVENUE AUTHORITIES BELOW IN T HE LIGHT OF THE FACTS AND CIRCUMSTANCES OF THE CASE. ITA NO.6467/DEL./2015 3 5. AT THE VERY OUTSET, IT IS FAIRLY CONCEDED BY LD. AR FOR THE ASSESSEE THAT THE APPEAL FILED BY THE REVENUE CHALL ENGING THE IMPUGNED ORDER PASSED BY THE LD. CIT(A) IS LIABLE TO BE ALLO WED IN VIEW OF THE DECISION RENDERED BY HONBLE APEX COURT IN CASE CIT ED AS CIT VS. CLASSIC BINDING INDUSTRIES [2018] 96 TAXMANN.COM 40 5 (SC). 6. KEEPING IN VIEW THE FACT THAT ASSESSEE IS AP PROPRIATORSHIP CONCERN WHICH IS INTO MANUFACTURING IN THE STATE OF HIMACHAL PRADESH ENTITLED FOR DEDUCTION U/S 80IC SUBJECT TO FULFILLI NG OF CONDITIONS CONTAINED IN SUB SECTION 2 OF SECTION 80IC AT THE R ATE OF 100% OF PROFIT AND GAINS FOR FIRST FIVE ASSESSMENT YEARS AND THERE AFTER DEDUCTION IS PERMISSIBLE @ 25%. AO AFTER DULY THRASHING THE FA CTS AND LAW APPLICABLE TO THE ISSUE IN CONTROVERSY REACH THE CO NCLUSION THAT THE ASSESSEES CLAIM FOR 100% DEDUCTION OF PROFITS FROM BUSINESS INCOME U/S 80IC ON THE 6 TH ASSESSMENT YEAR STARTING FROM INITIAL AY 2007-08 I S NOT SUSTAINABLE, HENCE, RIGHTLY RESTRICTED THE CLAI M OF THE ASSESSEE TO 25% AND DISALLOWED THE REMAINING THE AMOUNT OF RS. 1,53,99,359/-. 7. HOWEVER, LD. CIT(A) HAS ERRED IN ALLOWING THE 1 00% DEDUCTION OF PROFIT U/S 80IC TO THE ASSESSEE IN THE 6 TH ASSESSMENT YEAR STARTING FROM INITIAL AY 2007-08. FOLLOWING THE DEC ISION RENDERED BY HONBLE APEX COURT IN CASE CLASSIC BINDING INDUSTRY (SUPRA), WE SET ASIDE THE FINDINGS RETURN BY LD. CIT (A) AND RESTOR ED THE ASSESSMENT ITA NO.6467/DEL./2015 4 ORDER PASSED BY AO MAKING ADDITION OF RS. 1,53,99,3 59/- BY ALLOWING THE DEDUCTION U/S 80IC @ 25%. CONSEQUENTLY, APPEAL FILED BY THE REVENUE IS HEREBY ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON THIS 05 TH FEBRUARY, 2019. SD/- SD/- (R.K.PANDA) (K ULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 05/02/ 2019 BR COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-XXVI, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI. DATE OF DICTATION 18.01.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 18.01.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 05.02.1019 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER ITA NO.6467/DEL./2015 5