DCIT, CENTRAL CIRCLE- 1, FARIDABAD vs. ACTION CONSTRUCTION EQUIPMENT LTD., FARIDABAD

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ITA 4023/DEL/2018Status: DisposedITAT Delhi02 November 2021AY 2011-125 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that if a deduction was allowed in earlier years on the same facts and claim, the Assessing Officer cannot take a fresh view. Therefore, the CIT(A)'s order was not found to be erroneous.

What were the facts?

The Revenue appealed against the CIT(A)'s deletion of an addition made on account of disallowance of deduction under Section 80IC. The assessee had claimed this deduction for multiple assessment years, and it had been allowed in prior years following ITAT directions.

What were the issues?

Whether the CIT(A) was correct in deleting the addition for Section 80IC deduction by following earlier years' orders, despite the AO raising new issues regarding manufacture/production and plant/machinery value.

Which sections of the Income-tax Act were involved?

Section 80IC

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI ‘A’ BENCH,

Before: SHRI N.K. BILLAIYA, & MS. SUCHITRA KAMBLE

For Appellant: Shri P.S. Kashyap, Adv
Hearing: 02.11.2021Pronounced: 02.11.2021

PER N.K. BILLAIYA, ACCOUNTANT MEMBER,

1.

This appeal by the Revenue is preferred against the order of the Commissioner of Income Tax [Appeals] - 3, Gurgaon dated 29.03.2018 pertaining to Assessment Year 2011-12.

2.

The grievances of the Revenue read as under:

“1. Whether on the facts and in the circumstances of the case the Ld. CIT(A) was correct in deleting the addition of Rs.10,13,30,971/- made by the AO on account of disallowance of deduction u/s 80IC of the I.T. Act on the basis of deduction allowed in earlier years as per the directions of the Hon’ble ITAT on a single issue ignoring other issues which were also attributable to the said disallowance.

2. Whether on the facts and in the circumstances of the case the Ld. CIT(A) was right in deleting the addition of Rs.10,13,30,971/- made by the AO on account of disallowance of deduction u/s 80IC of the I.T. Act ignoring the fact that the Bazpur unit was engaged in assembling only which does not amount to manufacture or production of an article or thing..

3. Whether on the facts and in the circumstances of the case the Ld. CIT(A) was right in deleting the addition of Rs.10,13,30,971/- made by the AO on account of disallowance of deduction u/s 80IC of the I.T. Act ignoring the fact that the value of plant and machinery of the unit did not commensurate with the production shown from this unit.”

3.

A perusal of the grievance of the Revenue mentioned hereinabove shows that the deduction has been allowed in earlier A.Ys and the ld. CIT(A) has followed the orders of the earlier A.Ys.

4.

Briefly stated, the facts of the case are that the only issue involved in this appeal is the allowability of deduction u/s 80IC of the Income tax Act, 1961 [hereinafter referred to as 'The Act' for short].

Facts on record show that the year under consideration is the 5th 5. year of claim of deduction u/s 80IC of the Act, meaning thereby, that the claim has been allowed from A.Ys 2007-08 to 2010-11.

6.

It appears that the claim of deduction has been denied from A.Ys 2007-08 to 2010-11 and pursuant to the directions of the Tribunal, the Assessing Officer allowed the claim of deduction vide order dated 18.03.2015.

7.

Since the Assessing Officer had allowed the deduction pursuant to the directions of this Tribunal from A.Ys 2007-08 to 2010-11, the ld. CIT(A) allowed the claim of deduction following the earlier orders.

8.

In our considered opinion, if the deduction has been allowed in earlier years on the same set of facts and on similar claim the Assessing Officer cannot take a fresh view. We, therefore, do not find any error or infirmity in the findings of the ld. CIT(A).

9.

In the result, the appeal filed by the Revenue in is dismissed.

The order is pronounced in the open court on 02.11.2021.

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