ITO, Parwanoo V. M/s Usha Infrasystem, Parwanoo

ITA 78/CHANDI/2011

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 1376 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-03-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 21-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K MITTAL
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES B CHANDIGARH BEFORE SHRI D.K.SRIVASTAVA, ACCOUNTANT MEMBER AND MS SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO. 78/CHD/2011 ASSESSMENT YEAR: 2007-08 THE ITO, VS. M/S USHA INFRASYSTEMS, PARWANOO (H.P.) PARWANOO PANNN AABFU5560G (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S.K MITTAL RESPONDENT BY: NONE ORDER PER SUSHMA CHOWLA, JM THE APPEAL BY THE REVENUE IS AGAINST THE ORDER OF CIT(A), SHIMLA RELATING TO ASSESSMENT YEAR 2007-08 AGAINST THE ORD ER PASSED UNDER SECTION OF THE I.T. ACT. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1. ON THE FACTS AND CIRCUMSTANCES, THE LD. CIT(A) HAS ERRED IN HOLDING THAT THE PROCESS OF THREADING AND PAININ G OF ANCHOR RODS CARRIED OUT BY THE ASSESSEE AMOUNTED TO MANUFACTURE, AND CONSEQUENTLY ALLOWING DEDUCTION U/ S 80 IC. 2. THE LD. CIT(A) ERRED IN HOLDING THAT MANUFACTURE OF ANCHOR RODS CARRIED OUT BY THIRD PARTIES ON JOB WOR K BASIS CAN BE CONSIDERED AS MANUFACTURING ALLOWING DEDUCTI ON U/S 80 IC. 2 3. DESPITE SERVICE OF NOTICE NONE APPEARED ON BEHAL F OF THE ASSESSEE. FROM THE PERUSAL OF THE RECORD, WE FIND THAT THE IS SUE STANDS COVERED BY THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE AN D WE PROCEED TO DISPOSE OF THE APPEAL AFTER HEARING THE LD. DR FOR THE REVENUE. 4. THE ONLY ISSUE ARISING IN THE PRESENT APPEAL IS IN RESPECT OF DEDUCTION CLAIMED U/S 80 IC OF THE ACT IN RESPECT O F THE MANUFACTURING ACTIVITY CARRIED ON ITS OWN BEHALF AND ON BEHALF OF THE THIRD PARTY. THE ASSESSEE IS ENGAGED IN THE MANUFACTURING OF FOUNDAT ION ANCHOR RODS FOR WINDMILLS WITH ITS UNITS ESTABLISHED AT PARWANOO, H .P. THE ASSESSEE HAD STARTED PRODUCTION W.E.F. 29.6.2004 I.E. ASSESSMENT YEAR 2005-06 AND THIS WAS THE THIRD YEAR OF PRODUCTION. SURVEY OPERATION WAS CONDUCTED AT THE BUSINESS PREMISES OF THE ASSESSEE ON 29.12.2005. W HILE COMPLETING THE ASSESSMENT FOR ASSESSMENT YEAR 2006-07, DEDUCTION U /S 80 IC OF THE ACT WAS NOT ALLOWED TO THE ASSESSEE. THE ASSESSING OFF ICER IN VIEW OF THE SAME DID NOT ALLOW THE AFORESAID DEDUCTION TO THE A SSESSEE FOR THE YEAR UNDER APPEAL. THE CIT(A) FOLLOWING THE RATIO LAID DOWN BY THE TRIBUNAL IN ITA NO. 499/CHD/2009 RELATING TO ASSESSMENT YEAR 2005-06 (ORDER DATED 30.11.2009) ALLOWED THE CLAIM OF THE ASSESSEE . THE REVENUE IS IN APPEAL AGAINST THE SAID ORDER OF THE TRIBUNAL. 5. WE FIND THAT THE ISSUE STANDS COVERED BY THE OR DER OF THE TRIBUNAL IN ASSESSEES OWN CASE RELATING TO ASSESSMENT YEAR 2006-06 WHEREIN VIDE ORDER DATED 30.11.2009 IN ITA NO. 499/CHD/2009, THE CLAIM OF THE ASSESSEE REGARDING DEDUCTION U/S 80 IC HAD BEEN ALL OWED BY THE TRIBUNAL. FURTHER, SIMILAR CLAIM IN ASSESSMENT YEAR 2006-07 H AS ALSO BEEN ALLOWED 3 BY THE TRIBUNAL VIDE ORDER IN ITA NO. 1158/CHD/2009 ORDER DATED 29.1.2010. THE FACTS OF THE PRESENT CASE ARE IDE NTICAL TO THE FACTS OF THE EARLIER YEARS AND FOLLOWING OUR EARLIER ORDER, WE U PHOLD THE ORDER OF CIT(A) IN ALLOWING DEDUCTION U/S 80 IC OF THE ACT. THE GROUNDS OF APPEAL RAISED BY THE REVENUE ARE THUS DISMISSED. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 3 RD DAY OF MARCH, 2011. SD/ SD/- (D.K.SRIVASTAVA) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 3 RD MARCH, 2011 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR