DCIT, NEW DELHI vs. M/S AUTO IGNITION LTD., NEW DELHI

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ITA 5708/DEL/2015Status: DisposedITAT Delhi01 October 2018AY 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 dismissed the Revenue's appeal, following its own prior decisions and the CIT(A)'s orders in the assessee's own case for preceding assessment years. The Tribunal found the issue to be identical and covered by previous rulings.

What were the facts?

The Revenue appealed against the deletion of a disallowance made under Section 80IC. The disallowance was based on observations during a survey that the assessee's Pant Nagar unit was not engaged in manufacturing but only received finished goods from another unit.

What were the issues?

Whether the disallowance of deduction under Section 80IC was justified, considering the assessee's manufacturing activities and previous favorable rulings.

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 BENCHES “F” : DELHI

Before: SHRI BHAVNESH SAINI & SHRI L.P. SAHU

Hearing: 12.09.2018Pronounced: 01.10.2018

This appeal by Revenue has been directed against the Order of the Ld. CIT(A)-1, New Delhi, dated 21.07.2015, for the A.Y. 2011-2012, challenging the Order of the Ld. CIT(A) in 2 ITA.No.5708/Del./2015 Auto Ignition Ltd., New Delhi. deleting the disallowance made by the A.O. under section 80IC of Rs.1,64,63,311/-.

2.

Briefly, the facts of the case are that assessee- company is engaged in the manufacturing of auto electrical parts viz., starter motor, alternator, dynamos, solenoid switches and other auto electrical parts. The assessee has its unit at Faridabad as well as Pant Nagar. A Survey was conducted at the business premises of the assessee-company at Faridabad on 15.02.2010 by ACIT, Circle Faridabad and at Pant Nagar, Rudrapur District, Udham Singh Nagar. It was observed during the course of survey operation that finished goods were transferred to assessee-company’s other unit and no manufacturing activity were being carried-out by the assessee-company at Pant Nagar unit. Based on this report, assessee-company’s claim of deduction under section 80IC was rejected for A.Y. 2008-2009. Assessee-company’s case was also reopened for A.Ys. 2006-2007 and 2007-2008 and deduction claimed under section 80IC was disallowed.

3 ITA.No.5708/Del./2015 Auto Ignition Ltd., New Delhi. Similarly, the deduction claimed for A.Ys. 2009-2010 and 2010-2011 was disallowed by the A.O. Based on the same finding recorded in those years, deduction under section 80IC to the extent of Rs.1,64,63,311/- was disallowed for this year also.

2.1. The assessee filed appeal before Ld. CIT(A) and it was contended that disallowance made in A.Ys. 2006-2007, 2007-2008, 2009-2010 and 2010-2011 made by the A.O. has been deleted by the Ld. CIT(A). It was also claimed that there is no change in the facts and circumstances of the case. The Ld. CIT(A) found that he has decided assessee’s case for A.Y. 2010-2011 and ITAT decided assessee’s case for the A.Ys. 2006-2007, 2007-2008, 2008-2009 and 2009-2010. The Ld. CIT(A) reproduced the findings of CIT(A) in assessee’s own case for the A.Y. 2010-2011 as well as the Order of the Tribunal in assessee’s own case and deleted the addition.

3.

Learned Counsel for the Assessee at the outset contended that ITAT, Delhi, A-Bench, in assessee’s own case

4 ITA.No.5708/Del./2015 Auto Ignition Ltd., New Delhi. for A.Y. 2010-2011 in ITA.No.4488/Del./2014 vide Order dated 14.08.2017 dismissed the departmental appeal on identical ground following its earlier decision in the case of the assessee. The departmental appeal has been dismissed. Copy of the Order is placed on record and provided to the Ld. D.R. who has also stated that the issue is covered in favour of the assessee.

4.

After considering the rival submissions, we are of the view that the issue is identical as has been considered in preceding assessment years in which the Tribunal has confirmed the Order of the Ld. CIT(A) in deleting the addition. The issue is covered by the Order of the Tribunal in the case of the assessee vide Order dated 14.08.2017 (supra). Following the same, we dismiss the appeal of the Revenue.

5.

In the result, appeal of the Department is dismissed.

5 ITA.No.5708/Del./2015 Auto Ignition Ltd., New Delhi. Order pronounced in the open Court.

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