ACIT, Palampur V. M/s Himachal Wire Industries Pvt. Ltd., Kangra

ITA 826/CHANDI/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 1013 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-03-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 06-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE SHRI T.R. SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO. 826/CHD/2012 (ASSESSMENT YEAR : 2009-10) THE A.C.I.T., VS. M/S HIMACHAL WIRE INDUSTRIES PVT. LTD., CIRCLE PALAMPUR (H.P.). G.T. ROAD, DAMTAL, DISTT. KANGRA (H.P.). PAN: AAACH8864N (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AKHILESH GUPTA, DR RESPONDENT BY : NONE DATE OF HEARING : 04.03.2013 DATE OF PRONOUNCEMENT : 13.03.2013 O R D E R PER SUSHMA CHOWLA, J.M, : THE APPEAL FILED BY THE REVENUE IS AGAINST THE ORDE R OF THE COMMISSIONER OF INCOME TAX (APPEALS), SHIMLA DATED 16.05.2012 RELATING TO ASSESSMENT YEAR 2009-10 AGAINST THE ORD ER PASSED U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. THE REVENUE HAS RAISED THE FOLLOWING GROUND OF A PPEAL: 1. ON THE FACTS AND THE CIRCUMSTANCES, THE LD. CI T(A) HAS ERRED IN ALLOWING THE DEDUCTION CLAIMED U/S 80IC AMOUNTIN G TO RS.84,61,019/- DISALLOWED BY THE A.O. 3. DESPITE SERVICE OF NOTICE NONE APPEARED FOR THE ASSESSEE NOR ANY APPLICATION WAS MOVED FOR ADJOURNMENT. SHRI AKHILE SH GUPTA PUT IN APPEARANCE ON BEHALF OF THE REVENUE-APPLICANT AND P UT FORWARD HIS CONTENTION. 2 4. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E WAS ENGAGED IN THE MANUFACTURING OF G.I. WIRE, BARBED WIRES, GSS WIRES AND CHAIN LINKS, STAPLE NAILS AND EARTH WIRES. THE MANUFACTURING PR OCESS UNDERTAKEN BY THE ASSESSEE INVOLVES DRAWING OF WIRE WHICH AFTER T HE DRAWING, IS ANNEALED AND ENAMELED. THE ASSESSEE HAD CLAIMED DE DUCTION UNDER SECTION 80IC OF THE ACT AGAINST PROFITS EARNED FROM SUCH MANUFACTURING PROCESS. THE ASSESSING OFFICER DISALLOWED THE CLAI M OF DEDUCTION UNDER SECTION 80IC OF THE ACT IN VIEW OF THE RATIO LAID D OWN BY THE HON'BLE SUPREME COURT IN THE CASE OF COLLECTOR OF CENTRAL E XCISE VS. TECHNO WELD INDUSTRIES 2003 (155) ELT 209 (SC). 4. THE CIT (APPEALS) ALLOWED THE CLAIM OF THE ASSES SEE IN VIEW OF THE ORDER OF THE TRIBUNAL PASSED IN THE CASE OF ASSESSE E ITSELF RELATING TO ASSESSMENT YEAR 2005-06. 5. THE REVENUE IS IN APPEAL AGAINST THE ORDER OF CI T (APPEALS). 6. WE FIND THAT THE ISSUE HAS BEEN DELIBERATED UPO N BY THE TRIBUNAL IN M/S HIMACHAL WIRE INDUSTRIES (P) LTD. V S. DCIT IN ITA NO.382/CHANDI/2009 RELATING TO ASSESSMENT YEAR 2005 -06 WITH LEAD ORDER IN M/S J.B.CONDUCTORS & CABLES VS. ITO IN ITA NO.215/CHANDI/2009 RELATING TO ASSESSMENT YEAR 2005 -06 VIDE ORDER DATED 30.11.2009. THE TRIBUNAL EXTENSIVELY DEALT WITH THE CLAIM OF DEDUCTION U/S 80IC OF THE ACT IN RESPECT OF THE MANUFACTURING ACTIVITIES CARRIED ON BY THE ASSESSEE. THE TRIBUNA L VIDE PARA 18 AT PAGE 37 OF THE ORDER ALLOWED THE CLAIM OF THE ASSES SEE. THE TRIBUNAL ALSO ADDRESSED THE RATIO LAID DOWN BY THE HON'BLE SUPREME COURT IN CCE VS. TECHNOWELD INDUSTRIES LTD.[2003(15 5) ELT 209] AND THE ISSUE ARISING IN THE PRESENT APPEAL. THE CI T (APPEALS) IN 3 THE PRESENT APPEAL HAS ALLOWED THE CLAIM OF THE ASS ESSEE FOLLOWING THE ORDER OF THE TRIBUNAL IN ITA NO.382/CHANDI/2009 , ORDER DATED 30.11.2009, IN ASSESSEES OWN CASE. IN THE FACTS AND CIRCUMSTANCES OF THE CASE WE ARE IN AGREEMENT WITH THE ORDER OF THE CIT (APPEALS). THE FACTS OF THE PRESENT CASE ARE I DENTICAL TO THE FACTS IN THE CASE BEFORE THE TRIBUNAL AND FOLLOWING THE P ARITY OF REASONING WE UPHOLD THE ORDER OF THE CIT (APPEALS) AND DISMISS G ROUND NO.1 RAISED BY THE REVENUE. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH DAY OF MARCH, 2013. SD/- SD/- (T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 13 TH MARCH, 2013 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH