UPS INVERTER.COM,PARWANOO vs. DCIT, CIRCLE (NOW ITO), PARWANOO

आयकर अपील�य अ�धकरण,च�डीगढ़ �यायपीठ,च�डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL ‘SMC’ BENCH, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER आयकरअपीलसं./I.T.A. No. 529/CHD/2023 �नधा�रणवष� / Assessment Year : 2012-13 बनाम UPS Inverter.Com Deputy Commissioner of Vill. Nariyal, Near Sector-4, Income Tax, Circle Parwanoo, (H.P.) Pawnaoo (Now, ITO- Parwanoo) �थायीलेखासं./PAN NO: AABFU 7064R अपीलाथ�/Appellant ��यथ�/Respondent

(PHYSICAL HEARING) �नधा�रतीक�ओरसे/Assessee by : Shri. Manoj Kumar, C.A. राज�वक�ओरसे/ Revenue by : Dr. Ranjeet Kaur, Sr. D.R. सुनवाईक�तार�ख/Date of Hearing : 13.11.2024 उदघोषणाक�तार�ख/Date of Pronouncement : 09.12.2024 आदेश/Order The present appeal has been preferred by the assessee against the order passed by the ld. Commissioner of Income Tax, Appeal National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the “Ld. CIT(A)] dated 20.06.2023 for the Assessment Year: 2012-13. The assessee in this appeal is aggrieved by the action of the ld. CIT(A) in confirming the penalty levied by the Assessing Officer u/s 271(1)(c) of the Income Tax Act, 1961.

ITA No. 529/CHD/2023 UPS Inverter v. Dy. CIT 2 2. The brief facts of the case are that the assessee claimed

deduction u/s 80IC of the Income Tax Act on account of substantial

expansion of the manufacturing unit. However, the same was denied

by the Assessing Officer (hereinafter referred to as the “AO”) on

the technical ground that once a deduction has been claimed by the

manufacturing unit for first 5 years, then subsequently deduction

@100% cannot be claimed on account of substantial expansion

holding that there cannot be two ‘initial assessment years’ for

calculating the percentage of deduction. The Ld. AO imposed the

penalty u/s. 271(1)(c) of the Act, in respect of the aforesaid

disallowance made by him.

substantial expansion travelled up to the Hon’ble Supreme Court in

the case of Pr. CIT v. Aarham Softronics 2019-ITOL 73 (SC)-IT-

LB. The Hon’ble Supreme Court has decided the issue in favour of

the assessee and has held that the assessee is entitled to the

deduction u/s 80IC of the Income Tax Act on substantial expansion

ITA No. 529/CHD/2023 UPS Inverter v. Dy. CIT 3 @100% and that ‘initial year’ to be taken is the year in which such

substantial expansion was undertaken. Since the issue was debatable

and which has been finally decided in favour of the assessee and

there is no element of furnishing any particulars of income or of

concealment of income, therefore, there is no justification for levy

of impugned penalty. The same is ordered to be deleted.

Order pronounced on 09.12.2024. Sd/- (SANJAY GARG) Judicial Member Dated : 09.12.2024 “GP/Sr.PS.” आदेशक���त�ल�पअ�े�षत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकरआयु�त/ CIT 4. �वभागीय��त�न�ध, आयकरअपील�यआ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड�फाईल/ Guard File आदेशानुसार/ By order, सहायकपंजीकार/ Assistant Registrar

ITA No. 529/CHD/2023 UPS Inverter v. Dy. CIT 4