ACIT, C-3(1), Chandigarh V. M/s Pacific India, Chandigarh

MA 33/CHANDI/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 4688 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 14-03-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 21-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MANJIT SINGH
• Section: 143(3); 80IC; 208

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH B , CHANDIGARH , ! '# $% & ' ( )% , ! BEFORE: SHRI SANJAY GARG, JUDICIAL MEMBER AND SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER / MA NO.33/CHD/2019 IN ./ ITA NO.816/CHD/2018 / ASSESSMENT YEAR :2014-15 THE A.C.I.T., CIRCLE 3(1), CHANDIGARH. M/S PACIFIC INDIA , 5012, 1 ST FLOOR, MODERN HOUSING COMPLEX, CHANDIGARH. ./ PAN: AAIFE4608F /APPELLANT /RESPONDENT !' /ASSESSEE BY : SHRI MANJIT SINGH, SR.DR ' / REVENUE BY : SHRI PARIKSHIT AGGARWAL, CA # $! % /DATE OF HEARING : 08.03.2019 &'()! % /DATE OF PRONOUNCEMENT:14.03.2019 /ORDER PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER : BY WAY OF THIS MISCELLANEOUS APPLICATION THE REVENU E HAS SOUGHT RECALLING OF THE ORDER OF THE I.T.A.T. P ASSED IN ITA NO.816/CHD/2018 DATED 1.8.2018 RELATING TO ASSE SSMENT YEAR 2014-15. 2. THE DEPARTMENT HAS IN ITS MISCELLANEOUS APPLICAT ION FILED BEFORE US POINTED OUT THAT THE I.T.A.T. HAD D ECIDED THE ISSUE INVOLVED IN THE APPEAL IN FAVOUR OF THE ASSES SEE FOLLOWING THE DECISION OF THE HON'BLE JURISDICTIONA L HIGH COURT ON THE ISSUE INVOLVED, BUT IT HAS BEEN CONTEN DED THAT 2 SUBSEQUENTLY THE HON'BLE APEX COURT HAD REVERSED TH E DECISION OF THE HON'BLE JURISDICTIONAL HIGH COURT A ND IN VIEW OF THE SAME, THERE WAS AN ERROR IN THE ORDER O F THE I.T.A.T. WHICH NEEDED RECTIFICATION. THE FACTS OF T HE CASE AND THE CONTENTION OF THE REVENUE AS POINTED OUT IN THE MISCELLANEOUS APPLICATION ARE REPRODUCED HEREUNDER: SUB: MISCELLANEOUS APPLICATION UNDER SUB- SECTION (2) OF SECTION 254 OF INCOME TAX ACT, 1961 - REG. BRIEF FACTS OF THIS CASE ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF PRODUCTION OF PHARMACEUT ICAL PRODUCTS. IT HAS UNIT LOCATED IN BADDI AND CLAIMS DEDUCTION U/S 80IC ON THIS UNIT. ASSESSEE HAS CLAIM ED 100% DEDUCTION U/S 80IC FOR FIRST FIVE YEARS ON THI S UNDERTAKING AND AGAIN CLAIMED 100% DEDUCTION IN THE NIN TH YEAR BASED ON THE SUBSTANTIAL EXPANSION CARRIED OUT IN FIFTH YEAR WHICH WAS RESTRICTED TO 25% IN VIEW OF T HE FACT THAT THE FIVE ASSESSMENT YEARS COMMENCING FROM THE INITIAL ASSESSMENT YEAR STOOD EXHAUSTED AND CLAIM OF DEDUCT ION AT 100% U/S 80IC OF THE ACT FOR NINTH YEAR I.E A.Y 2 014-15 WAS NOT TO BE ALLOWED. THUS, ORDER U/S 143(3) DATED 31.08.2016 WAS PASSED BY RESTRICTING THE DEDUCTION U/S 80IC AT RS. 20,64,856/- I.E @ 25% AND BY DISALLOWING T HE REMAINING DEDUCTION OF RS. 61,94,565/-. THE ASSESSEE FILED AN APPEAL AGAINST THE ORDER OF T HE AO BEFORE THE LD.CIT(A) WHO ALLOWED THE APPEAL OF THE ASSESSEE BY PLACING RELIANCE ON HON'BLE HIMACHAL PRADESH HIGH COURT ORDER IN THE CASE OF M/S STOVECRAFT INDIA. HOWEVER, THE REVENUE FILED AN APPEAL BEFORE THE HON 'BLE ITAT AGAINST THE ORDER OF THE LD.CIT(A) . THE HON'B LE ITAT VIDE ORDER DATED 01.08.2018 IN ITA NO. 816/CHD/2018 DISM ISSED THE APPEAL OF THE REVENUE. FURTHER, THE ORDER OF THE HON'BLE HIMACHAL PRADESH HIGH COURT IN THE CASE OF M/S STOVECRAFT INDIA, REL IED UPON BY THE HON'BLE ITAT HAS BEEN OVER-RULED BY THE HON'BLE SUPREME COURT OF INDIA IN CIVIL APPEAL NO.7 208 OF 2018 IN FAVOUR OF DEPARTMENT. KEEPING IN VIEW THE ABOVE FACTS, THE HON'BLE TRIBUNAL MAY. THEREFORE, KINDLY BE REQUESTED TO PAS S AN ORDER OF RECTIFICATION OF THE ABOVESAID ORDER IN VI EW OF THE ABOVE-SAID ORDER IN VIEW OF THE JUDGEMENT OF THE HO N'BLE SUPREME COURT OF INDIA IN CIVIL APPEAL NO.7208 OF 2 018 IN FAVOUR OF THE DEPARTMENT. THIS APPLICATION IS BE ING FILED AS PER THE APPROVAL OF THE PR. CHIEF COMMISSIONER O F 3 INCOME TAX, CHANDIGARH VIDE LETTER NO.5316 DATED 04.12.2018 CONVEYED TO THIS OFFICE VIDE LETTER NO. 359 6 DATED 18.12.2018 OF THE OFFICE OF THE PR. COMMISSION ER OF INCOME TAX-1, CHANDIGARH. 3. DURING THE COURSE OF HEARING BEFORE US BOTH THE PARTIES CONCEDED THAT THE HON'BLE APEX COURT HAS NOW SUBSEQ UENTLY PASSED AN ORDER CONCURRING WITH THE VIEW OF THE HON 'BLE JURISDICTIONAL HIGH COURT ON THE ISSUE AND REVERSIN G ITS DECISION IN THE CASE OF CIT VS. M/S CLASSIC BINDING INDUSTRIES IN CIVIL APPEAL NO.7208 OF 2018 & OTHERS VIDE IN ITS DECISION RENDERED IN THE CASE OF PR.CIT, SHIMLA VS. M/S AARHAM SOFTRONICS IN CIVIL NO.1784 OF 2019 DATED 20 .2.2019. THE LD. DR CONCEDED, THEREFORE, THAT THERE WAS NO M ERIT IN THE MISCELLANEOUS APPLICATION FILED SINCE THE RATIO OF THE DECISION FOLLOWED BY THE I.T.A.T. ALLOWING THE ASSE SSEES APPEAL LAID DOWN IN THE CASE OF STOVECRAFT INDIA VS . CIT, REPORTED IN 160 DTR 378, HAD BEEN UPHELD BY THE HON 'BLE APEX COURT AND, THEREFORE, THERE WAS NO LONGER ANY ERROR IN THE ORDER PASSED BY THE I.T.A.T. IN VIEW OF THE ABOVE, THE MISCELLANEOUS APPLICATION FILED BY THE REVENUE IS DISMISSED. 4. IN THE RESULT, THE MISCELLANEOUS APPLICATION FIL ED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- & ' ( )% (SANJAY GARG) (ANNAPURNA GUPTA) ! /JUDICIAL MEMBER *+ ! /ACCOUNTANT MEMBER - & /DATED: 14 TH MARCH, 2019 * % * 4 '*!+,-,! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # .! / CIT 4. # .! ( )/ THE CIT(A) 5. ,/0 !1 , % 1 , 23405 / DR, ITAT, CHANDIGARH 6. 046$ / GUARD FILE '* # / BY ORDER, / ASSISTANT REGISTRAR