Shri Ram Print and Pack, Solan V. DCIT, Parwanoo

ITA 9/CHANDI/2017

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8216 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 02-01-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92; 80IC; 80IC

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES, SMC, CHANDIGARH BEFORE MS. DIVA SINGH, JUDICIAL MEMBER ITA NO. 9/CHD/2017 ASSESSMENT YEAR: 2012-13 SHRI RAM PRINT & PACK, VS. THE DCIT, CIRCLE, TEHSIL NALAGARH, PARWANOO. DISTT. SOLAN PAN NO. ABFFS4545L (APPELLANT) (RESPONDENT) APPELLANT BY : SH. TEJ MOHAN SINGH RESPONDENT BY : SH. S.K. MITTAL DATE OF HEARING : 21.02.2017 DATE OF PRONOUNCEMENT : 30.03.2017 ORDER THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE A SSAILING THE ORDER DATED 27.10.2016 OF CIT(A), SHIMLA PERTAINING TO 20 12-13 ASSESSMENT YEAR. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUND OF THE APPEAL : THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE TH E LD. CIT IS NOT JUSTIFIED IN UPHOLDING THE ALLOWANCE OF DEDU CTION U/S 80IC OF THE INCOME-TAX ACT, 1961 AND THEREBY UPHOL DING AN ADDITION OF RS. 28,35,733/- MADE TO THE TAXABLE INC OME OF THE APPELLANT. FACT OF THE MATTER IS THAT THE APPELLAN T IS ENTITLED TO DEDUCTION U/S 80IC @ 100% IN LIGHT OF THE SUBSTA NTIAL EXPLANATION UNDERTAKEN IN THE YEAR 2011-12 RELEVANT TO THE INSTANT ASSESSMENT YEAR . 3. IN THE FACTS OF THE PRESENT CASE, THE ASSESSEE ELIGIBLE TO CLAIM DEDUCTION UNDER SECTION 80IC OF THE ACT HAD CLAIMED 100% DEDU CTION OF ITS PROFITS FOR FIVE YEARS FROM A.Y. 2005-06 TO A.Y. 2009-10. IN TH E IMPUGNED YEAR I.E. A.Y. 2012-13 WHICH WAS THE EIGHTH YEAR OF THE PRODUCTION , THE ASSESSEE CLAIMED DEDUCTION U/S 80IC @ 100% OF THE PROFITS ON THE BAS IS THAT IT HAD UNDERTAKEN SUBSTANTIAL EXPANSION OF ITS UNDERTAKING IN F.Y. 20 10-11 RELEVANT TO A.Y. 2011- 12. IT WAS CLAIMED THAT THEREFORE A.Y. 2011-12 WAS TO BE TREATED AS ITS INITIAL YEAR FOR THE PURPOSE OF SECTION 80IC. THE A.O. REJ ECTED THE ASSESSEES CONTENTION AND REDUCED THE DEDUCTION TO 25% OF THE ELIGIBLE PROFITS OF THE UNDERTAKING. THE MATTER WAS CARRIED IN APPEAL BEFOR E THE CIT(A) WHO UPHELD 2 THE ORDER OF THE A.O. RELYING UPON THE DECISION OF CHANDIGARH BENCH OF THE TRIBUNAL IN THE CASE OF M/S HYCRON ELECTRONICS VS. ITO IN ITA NO. 798/CHD/2015 DT. 27/05/2015. 4. AGGRIEVED BY THE SAME THE ASSESSEE IS IN APPEAL . 5. THE LD. AR STATED THAT THOUGH THE ISSUE WAS COV ERED AGAINST THE ASSESSEE IN VIEW OF THE DECISION OF THE TRIBUNAL IN THE CASE OF HYCRON ELECTRONICS (SUPRA) IT IS BEING CHALLENGED BEFORE HIGH COURT. A PART FROM THAT IT WAS CLARIFIED ON QUERY THAT THE TRIBUNAL HAD DECIDED TH E ISSUE AGAINST THE ASSESSEE IN THE PRECEDING YEAR I.E., A.Y. 2011-12 FOLLOWING THE DECISION IN THE CASE OF HYCRON ELECTRONICS (SUPRA). THE LD. SR. DR RELIES UPON THE IMPUGNED ORDER. 6. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE MATERIAL AVAILABLE ON RECORD. I FIND THAT IN THE FACE OF THE ADMITTED FA CTS, THE IMPUGNED ORDER DESERVES TO BE UPHELD. NOT ONLY JUDICIAL PRECEDENT IS AVAILABLE ON THE ISSUE BUT EVEN IN ASSESSEE'S OWN CASE, THE PRECEDENT HAS BEEN FOLLOWED AND HAS NOT SHOWN TO BE AN INCORRECT DECISION EITHER ON FACTS O R LAW. SINCE THE ORDER UNDER CONSIDERATION IS THE EIGHTH YEAR, I FIND NO INFIRMI TY IN THE ORDER OF THE LD. CIT(APPEALS) RESTRICTING CLAIM OF DEDUCTION UNDER S ECTION 80IC TO 25% OF ELIGIBLE PROFITS. ACCORDINGLY, RESPECTFULLY FOLLOW ING THE PRECEDENT, THE GROUND RAISED BY THE ASSESSEE IS DISMISSED. THE SAID DECI SION WAS PRONOUNCED IN THE OPEN COURT ON THE DATE OF HEARING ITSELF. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT 30 TH MARCH,2017. SD/- (DIVA SINGH) JUDICIAL MEMBER RKK/POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR