M/s Om Plastics, Solan V. ITO, Baddi

ITA 924/CHANDI/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6860 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-09-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 02-06-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES, SMC, CHANDIGARH BEFORE MS. DIVA SINGH, JUDICIAL MEMBER ITA NO 924/CHD/2017 ASSESSMENT YEAR : 2013-14 M/S OM PLASTICS, VS. THE ITO, VILLAGE SWARAJ MAJRA, BADDI, (H.P.) NEAR CADILA HEALTHCARE LTD., BADDI, DISTT. SOLAN (HP). PAN NO. AABFO4821C (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANOJ KUMAR, CA RESPONDENT BY : SMT. CHANDER KANTA, SR.DR DATE OF HEARING : 13.07.2017 DATE OF PRONOUNCEMENT : 22.09.2017 ORDER THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE ASS AILING THE CORRECTNESS OF THE ORDER DATED 27.04.2017 OF LD. CIT (APP EALS) SHIMLA PERTAINING TO 2013-14 ASSESSMENT YEAR ON THE FOLLOWING GROUNDS : THE ID. CIT(A) IS WRONG IN DISALLOWING THE BENEFIT OF SUBSTANTIAL EXPANSION U/S 80IC(2) AND CONFIRMING THE DEDUCTION U/S 80IC ONLY TO THE EXTENT OF 25% AS AGAINST 100% BY HOLDING THAT BENEFIT OF SUBSTANTIAL EXPANSI ON IS ALLOWABLE ONLY TO THE UNDERTAKING WHICH WERE EXISTING AS ON 07.01 .2003. 2. IT WAS A COMMON STAND OF THE PARTIES BEFORE THE BEN CH THAT THE POINT AT ISSUE IS COVERED AGAINST THE ASSESSEE BY VIRTUE OF THE ORDER DATED 08.10.2015 OF ITAT IN THE CASE OF M/S HYCRON ELECTRONICS V S ITO, BADDI ITA NO. 326/CHD/2015. THE LD. AR SUBMITTED THAT THOUGH T HE ASSESSEE WOULD BE CARRYING THE ISSUE BEFORE THE HON'BLE HIGH COURT , HOWEVER, AS FAR AS THE PRESENT FORUM IS CONCERNED, ISSUE ON FACTS AND LA W IS AGAINST THE ASSESSEE. 3. THE ADMITTED FACTS ARE THAT THE ASSESSEE HAD ALREAD Y CLAIMED 100% DEDUCTION FOR THE INITIAL FIVE YEARS U/S 80IC OF THE ACT IN REGARD TO MANUFACTURING ACTIVITY COMMENCED ON 15.09.2006. ACCORDINGL Y, THE CLAIM OF 100% DEDUCTION IN THE 7 TH YEAR WAS HELD TO BE NOT PERMISSIBLE AND WAS RESTRICTED TO 25% BY THE AO WHICH WAS CONFIRMED IN APPEAL BY THE C IT(A). THERE BEING NO CHANGE IN FACTS AND CIRCUMSTANCES AS ITA 924/CHD/2017 A.Y 2013-14 PAGE 2 OF 2 CONSIDERED BY THE ITAT IN THE CASE OF M/S HYCRON ELECTR ONICS VS ITO, BADDI, THE APPEAL OF THE ASSESSEE ACCORDINGLY FOLLOWING TH E PRECEDENT LAID DOWN THEREIN, IS DISMISSED. 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND SEPTEMBER,2017. SD/- (DIVA SINGH) JUDICIAL MEMBER POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR ASSTT. REGISTRAR ITAT,CHANDIGARH.