M/s G.C. Fibres Ltd., Solan V. DCIT, Parwanoo

ITA 728/CHANDI/2016

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3784 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-11-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 07-06-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: INOSHI SHARMADR

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. 728/CHD/2016 ASSESSMENT YEAR: 2011-12 M/S G.C. FIBRES LTD., VS THE DCIT, VILLAGE SALLEWAL, CIRCLE - PARWANOO TEHSIL NALAGARH, (HP). DISTT. SOLAN (HP). PAN: AABCG9898G (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : MS.INOSHI SHARMA,DR DATE OF HEARING : 07.11.2016 DATE OF PRONOUNCEMENT : 07.11.2016 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST T HE ORDER OF LD. CIT(APPEALS), SHIMLA DATED 28.03.2016 FOR ASSESSMENT YEAR 2011-12 CHALLENGING THE ORDER OF LD . CIT(APPEALS) IN DISALLOWING DEDUCTION UNDER SECTION 80IC OF THE INCOME TAX ACT. 2. THE ASSESSEE COMPANY IS ENGAGED IN MANUFACTURING OF COTTON YARN. THE ASSESSEE STARTED ITS BUSINESS ACTIVITY/OPERATION ON 05.12.2004 AND THE INITIAL YE AR FOR CLAIM OF DEDUCTION UNDER SECTION 80IC OF THE ACT WA S ASSESSMENT YEAR 2005-06. THE ASSESSEE HAD ALREADY CLAIMED DEDUCTION @ 100% FOR THE FIRST FIVE YEARS F ROM ASSESSMENT YEAR 2005-06 TO 2009-10. THE ASSESSEE 2 COMPANY UNDERTOOK THE SUBSTANTIAL EXPANSION DURING ASSESSMENT YEAR 2007-08 BY WAY OF ADDITION TO THE P ROFIT & LOSS ACCOUNT AND STARTED CLAIMING 100% DEDUCTION UN DER SECTION 80IC FROM ASSESSMENT YEAR 2007-08 TREATING ASSESSMENT YEAR 2007-08 AS INITIAL ASSESSMENT YEAR FOR CLAIM OF DEDUCTION UNDER SECTION 80IC OF THE ACT. AFTER DETAILED DISCUSSION IN THE ASSESSMENT ORDER, THE AS SESSING OFFICER RESTRICTED DEDUCTION UNDER SECTION 80IC TO 30% IN THE YEAR UNDER APPEAL. 3. THE LD. CIT(APPEALS) NOTED THAT THE IDENTICAL IS SUE HAS ALREADY BEEN ADJUDICATED BY ITAT CHANDIGARH BENCH I N THE CASE OF M/S HYCRON ELECTRONICS VS ITO ( 41 ITR (TRIBUNAL)(CHD) 486 AND THE ISSUE IS COVERED AGAINS T THE ASSESSEE. THE ORDER HAS BEEN REPRODUCED IN THE IMP UGNED ORDER IN WHICH THE TRIBUNAL HELD THAT ASSESSEE IS E NTITLED TO 25% OF THE DEDUCTION DURING THE PRESENT YEAR BEC AUSE THE ASSESSEE HAS ALREADY AVAILED THE PERIOD OF FULL DEDUCTION @ 100% IN EARLIER FIVE YEARS. THE APPEAL OF THE ASSESSEE ON THIS GROUND WAS ACCORDINGLY, DISMISSED. 4. THE ASSESSEE HAS BEEN NOTIFIED THE DATE OF HEARI NG THROUGH REGISTERED POST, HOWEVER, NONE APPEARED ON BEHALF OF THE ASSESSEE. 5. AFTER CONSIDERING SUBMISSIONS OF THE LD. DR, WE FIND THAT ISSUE IS COVERED AGAINST THE ASSESSEE BY ORDER OF ITAT CHANDIGARH BENCH IN THE CASE OF M/S HYCRON ELECTRON ICS VS ITO (SUPRA). THE LD. CIT(APPEALS) CORRECTLY FOL LOWED THE ORDER OF THE TRIBUNAL WHICH IS REPRODUCED IN THE IM PUGNED ORDER. THERE IS NO INFIRMITY IN THE ORDER OF THE L D. 3 CIT(APPEALS) IN FOLLOWING ORDER OF THE JURISDICTION AL TRIBUNAL. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA GUPTA) (BHAVNE SH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 7 TH NOVEMBER,2016. POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT,DR ASSISTANT REGISTRAR, ITAT CHANDIGARH