ACIT, UTTRAKHAND vs. M/S. HIMALAYAN AUTOERA (INDIA) PVT. LTD., PANTNAGAR

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ITA 1736/DEL/2017Status: DisposedITAT Dehradun26 August 2022AY 2012-137 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 followed the decisions of a coordinate bench in similar appeals for prior assessment years, which had decided in favour of the assessee. Therefore, the Tribunal declined to interfere with the CIT(A)'s order.

What were the facts?

The assessee, a manufacturer of motor vehicle parts, claimed deduction under Section 80IC. The AO denied the deduction, noting that all raw material purchases and sales were made to a single party and that similar claims were denied in previous years.

What were the issues?

Whether the deduction under Section 80IC is admissible when all transactions are with a single party, and whether past decisions on similar issues bind the current appeal.

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 BENCH ‘DB’, NEW DELHI

Before: SH. N. K. BILLAIYA & MS. ASTHA CHANDRA

Hearing: 26/08/2022Pronounced: 26/08/2022

ORDER PER N.K. BILLAIYA, AM:

This appeal by the revenue is preferred against the order of the CIT(A), Haldwani dated 19.12.2016 pertaining to A.Y.2012-13.

2.

The solitary grievance of the revenue read as under :-

3.

Briefly stated that the facts of the case are that the assessee company drives income from manufacturing motor vehicle parts. During the year under consideration the assessee declared total income of Rs.33555245/-and claimed deduction under section 80 IC of the Act amounting to Rs.31406421/-.

4.

During the course of the scrutiny assessment proceedings the AO found that all the purchase of raw material and sale of final products are made to only one party namely M/s. Spicer India Ltd. The assessee was asked to justify its claim of deduction u/s. 80 IC of the Act. The assessee filed a detailed reply which did not find any favour with the AO who found that in the previous assessment years deduction claimed by the assessee was denied by the AO. The AO further found that in the previous assessment year the CIT(A) allowed the appeal of the assessee but since the revenue has preferred second appeal before the Tribunal the claim of deduction was denied.

5.

We find that this Tribunal in for A.Y. 2009-10 and ITA No.4521/Del/2013 for A.Y. 2010-11 has considered the similar grievance and has decided the appeal in favour of the assessee and against the revenue. The relevant findings of the coordinate Bench read as under :-

6.

Respectfully following the findings of the coordinate Bench (supra) we decline to interfere with the findings of the CIT(A). The appeal filed by the revenue is dismissed.

7.

Decision announced in the open court on 26.08.2022.

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