ACIT, C-4(1), Chandigarh V. Shelly Bansal, Chandigarh

MA 22/CHANDI/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6459 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 3 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 30-04-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 27-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K S BAINS
• Assessee Lawyers: PARVEEN KAPOOR

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH B , CHANDIGARH !'#, $ !% ', ' ' ( ) * +, !% BEFORE: SMT.DIVA SINGH, JM & SMT.ANNAPURNA GUPTA, A M ./ ) 01 /MA NO.22/CHD/2019 IN . / ITA NO.1665/CHD/2017 / ASSESSMENT YEAR : 2013-14 ) THE A.C.I.T., CIRCLE 4(1), CHANDIGARH. SHELLY BANSAL, H.NO.1376, SECTOR 40-B, CHANDIGARH. ./ PAN: AENPB4396P /APPELLANT /R ESPONDENT ! ' /ASSESSEE BY : SHRI PARVEEN KAPOOR, CA $ ' / REVENUE BY : SHRI K.S. BAINS SR. DR ' !' /DATE OF HEARING : 12.04.2019 ' !' /DATE OF PRONOUNCEMENT:30.04.2019 /ORDER PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER: THE CAPTIONED MISCELLANEOUS APPLICATION HAS BEEN FILED BY THE REVENUE SEEKING RECTIFICATION IN THE O RDER PASSED BY THE I.T.A.T. IN ITA NO.1665/CHD/2017, DAT ED 11.7.2018. 2. IT HAS BEEN STATED IN THE APPLICATION THAT THERE WAS A MISTAKE IN THE AFOREMENTIONED ORDER OF THE ITAT HAV ING ALLOWED THE ASSESSES APPEAL FOLLOWING THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT ,WHICH SUBSEQUENT LY STOOD REVERSED BY THE DECISION OF THE HONBLE APEX COURT. REFERRING TO THE FACTS OF THE CASE, IT HAS BEEN STA TED IN THE APPLICATION THAT THE ASSESSEE HAD CLAIMED DEDUCTION U/S 80IC OF THE ACT @ 100% OF THE ELIGIBLE PROFITS ON A CCOUNT PAGE 2 OF 4 MA NO.22/CHD/2019 A.Y.2013-14 OF SUBSTANTIAL EXPANSION UNDERTAKEN DESPITE HAVING CLAIMED DEDUCTION @ 100% FOR THE INITIAL STIPULATED FIVE YEARS SINCE THE COMMENCEMENT OF OPERATION, WHICH HA D BEEN RESTRICTED TO @25% OF THE ELIGIBLE PROFITS BY THE A.O. IT WAS ALSO POINTED OUT THAT THE AO HAD ALSO MADE ADDITION ON ACCOUNT OF INCOME ON INTEREST FREE ADVA NCES. THAT THE LD.CIT(A) HAD PARTLY ALLOWED THE ASSESSES APPEAL BY RESTRICTING INTEREST ON INTEREST FREE ADVANCES T O 10% INSTEAD OF 16% MADE BY THE AO ,BUT CONFIRMED THE RESTRICTION OF DEDUCTION ON PROFITS(INCLUDING THAT ON INTEREST INCOME ADDED) U/S 80IC,TO 25% OF THE SAME. IT WAS POINTED OUT THAT THERE WERE TWO GROUNDS AGITATE D BEFORE THE I.T.A.T.; ONE RELATING TO RESTRICTION OF DEDUCTION U/S 80IC TO 25% OF THE ELIGIBLE PROFITS AS AGAINST 100% CLAIMED BY THE ASSESSEE ON ACCOUNT OF SUBSTANTIAL EXPANSION UNDERTAKEN AND THE OTHER GROUND RELATED T O ADDITION MADE ON ACCOUNT OF INTEREST ON INTEREST FR EE ADVANCES AND THE CONSEQUENTIAL ALLOWANCE OF CLAIM O F DEDUCTION U/S 80IC THEREON @ 25% AS AGAINST 100% CLAIMED BY THE ASSESSEE. IT WAS POINTED OUT THAT TH E I.T.A.T. HAD NOTED THAT THE ISSUE OF CLAIM OF DEDUC TION U/S 80IC OF THE ACT HAD BEEN DECIDED BY THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF M/S STOVEK RAFT INDIA VS. COMMISSIONER OF INCOME TAX, ITA NOS.20-24 /2015 DATED 28.11.2017 IN FAVOUR OF THE ASSESSEE AND ACCO RDINGLY, THE I.T.A.T. HAD RESTORED BACK BOTH THE ISSUES TO T HE A.O. TO GRANT NECESSARY RELIEF IN ACCORDANCE WITH LAW AS PE R THE AFORESAID RULING OF THE HON'BLE JURISDICTIONAL HIGH COURT. PAGE 3 OF 4 MA NO.22/CHD/2019 A.Y.2013-14 3. THE REVENUE IN ITS MISCELLANEOUS APPLICATION BEF ORE US, HAS POINTED OUT THAT THE ORDER OF THE HON'BLE JURIS DICTIONAL HIGH COURT HAS NOW BEEN REVERSED BY THE HON'BLE APE X COURT VIDE ITS ORDER DATED 20.8.2018 IN THE CASE OF CLASS IC BINDING INDUSTRIES IN CIVIL APPEAL NO(S) 7208 OF 2018 DATED 20.08.2018 AND, THEREFORE, THERE WAS A MISTAKE IN T HE ORDER OF THE I.T.A.T. IN ALLOWING THE ASSESSES APPEAL FOLLOW ING THE DECISION OF THE HONBLE HIGH COURT. 4. DURING THE COURSE OF HEARING BEFORE US, THE LD. DR FAIRLY CONCEDED THAT THE ISSUE NOW STANDS COVERED IN FAVOU R OF THE ASSESSEE BY A SUBSEQUENT DECISION OF THE HON'BLE AP EX COURT IN THE CASE OF PCIT, SHIMLA VS. AARHAM SOFTRONICS & ORS. IN CIVIL APPEAL NO.1784 OF 2019, DATED 20.02.2019. THE LD. DR CONCEDED, THEREFORE, THAT THERE WAS NO MERIT IN THE MISCELLANEOUS APPLICATION. 4. WE HAVE HEARD THE LD.DR AND ALSO GONE THROUGH TH E CONTENTS OF THE APPLICATION FILED BEFORE US. IN VIE W OF THE ADMITTED POSITION THAT THE PROPOSITION OF LAW LAID DOWN BY THE JURISDICTIONAL HIGH COURT IN THE CASE OF STOVE KRAFT(SUPRA) HAS BEEN UPHELD BY THE HONBLE APEX COURT VIDE ITS DECISION IN THE CASE OF PR.CIT, SHIMLA VS. M/S AARHAM SOFTRONICS IN CIVIL APPEAL NO.1784 OF 2019, DATED 20.02.2019,THERE IS A DMITTEDLY NO MISTAKE IN THE ORDER OF THE ITAT WHICH HAS FOLLO WED THE DECISION OF THE JURISDICTIONAL HIGH COURT WHILE ALL OWING THE ASSESSES APPEAL. 5. THE MISCELLANEOUS APPLICATION FILED BY THE REVEN UE THEREFORE MERITS NO CONSIDERATION. PAGE 4 OF 4 MA NO.22/CHD/2019 A.Y.2013-14 6. IN THE RESULT, THE MISCELLANEOUS APPLICATION FIL ED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30.04.2019. SD/- SD/- !'# ' ( ) * + (DIVA SINGH) (ANNAPURNA GUPTA) 3 !% / JUDICIAL MEMBER !% / ACCOUNTANT MEMBER '' /DATED: 30.04. 2019 ** ' !-. /.! / COPY OF THE ORDER FORWARDED TO : / THE APPELLANT / THE RESPONDENT % 1!/ CIT % 1! ()/ THE CIT(A) .45 ! 6, ' 6, 89:5;/ DR, ITAT, CHANDIGARH 5: / GUARD FILE % / BY ORDER, / ASSISTANT REGISTRAR