VAPCO PACKAGING INDUSTRIES PRIVATE LIMITED,CHANDIGARH vs. DEPUTY COMMISSIONER OF INCOME TAX, CHANDIGARH
आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़
IN THE INCOME TAX APPELLATE TRIBUNAL
DIVISION BENCH, ‘SMC’, CHANDIGARH
BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER
आयकर अपील सं./ ITA No. 1116/CHD/2025
Ǔनधा[रण वष[ / Assessment Year : 2024-25
Vapco Packaging
Industries Private
Limited,
PlotNo. 807, Industrial
Area, Phase 2,
Chandigarh
बनाम
DCIT,
Circle 1,
Chandigarh
èथायी लेखा सं./PAN NO: AAJCV0621L
अपीलाथȸ/Appellant
Ĥ×यथȸ/Respondent
( Physical Hearing )
Ǔनधा[ǐरती कȧ ओर से/Assessee by : Shri B.M.Monga, Shri Rohit
Kaura and Ms. Khyati Avnish, Advocates
राजèव कȧ ओर से/ Revenue by :Dr. Ranjit Kaur, Addl. CIT, Sr.DR
सुनवाई कȧ तारȣख/Date of Hearing
:
27.10.2025
उदघोषणा कȧ तारȣख/Date of Pronouncement
:
31.10.2025
आदेश/Order
The present appeal has been preferred by the assessee against the order dated 23.06.2025 passed by the Ld. Addl.
/ JCIT (Appeals) [hereinafter referred to as ‘Addl. CIT(A)’], for the Assessment Year 2023-24. 1116 -Chd-2025
Vapco Packaging Industries Private Limited, Chandigarh
2
2. The Assessee in this appeal is aggrieved by the action of the lower authorities in denying the claim to the Assessee u/s 115BAB of the Income Tax Act, 1961 (in short 'the Act’) for a concessional corporate tax rate of 15%
(plus surcharge and cess) for new manufacturing domestic companies subject to fulfilment of conditions as stipulated under the relevant provisions.
3. The Addl. CIT(A) has mentioned in his order that the Assessee, though, has complied with all the formalities /
conditions for the claim u/s 115BAB, however, the Assessee had not debited any expenses on raw materials, wages, power, depreciation etc. and, hence, it indicated that the Assessee did not start his manufacturing activity during the year. He observed that section 115BAB requires actual manufacturing activity during the relevant year. He, therefore, observed that since the manufacturing activity of the Assessee had not commenced during the year, hence, the Assessee was not eligible for the aforesaid claim of concessional rate of tax u/s 115BAB of the Act.
1116 -Chd-2025
Vapco Packaging Industries Private Limited, Chandigarh
3
4. I have heard the rival contention and gone through the record. The ld. AR of the Assessee submitted that, in fact, the Ld. Addl. CIT(A) mistook from the return of income and relevant papers that the Assessee had not debited expenses towards raw material, wages, power, depreciation etc. from which he observed that the Assessee had not started its manufacturing activity.
The ld.
AR has brought my attention to the copy of the ITR alongwith computation of income and, in particular, page 24 of the paper book, a perusal of which reveals that the Assessee had duly debited freight outward expenses, power and fuel expenditure, salary and wages including contribution to recognized provident fund, depreciation amortization expenditure etc.
Even the Assessee has duly shown the closing stock of furnished goods. All these facts indicate that the manufacturing activity was duly started during the year. The Ld. CIT(A) did not take proper notice of the relevant columns of the return of income.
5. The ld. DR could not rebut the aforesaid factual aspect on the file. In view of this, the impugned order of the Ld. CIT(A) is set aside and the Assessing Officer is 1116 -Chd-2025
Vapco Packaging Industries Private Limited, Chandigarh
4
directed to allow the claim of the Assessee u/s 115BAB of the Act.
6. The appeal of the Assessee stands allowed.
Order pronounced on 31.10.2025. (SANJAY GARG)
Judicial Member
“आर.के.”
आदेशकȧĤǓतͧलͪपअĒेͪषत/ Copy of the order forwarded to :
1. अपीलाथȸ/ The Appellant
2. Ĥ×यथȸ/ The Respondent
3. आयकरआयुÈत/ CIT
4. ͪवभागीयĤǓतǓनͬध, आयकरअपीलȣयआͬधकरण, चÖडीगढ़/ DR, ITAT,
CHANDIGARH
5. गाड[फाईल/ Guard File
आदेशानुसार/ By order,
सहायकपंजीकार/