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Income Tax Appellate Tribunal, CHANDIGARH BENCHES, CHANDIGARH
Before: SHRI SANJAY GARG & Ms. ANNAPURNA GUPTA
Per Sanjay Garg, Judicial Member:
The captioned appeals were earlier decided vide orders of the Tribunal dated 24.5.2017 & 19.5.2017 respectively. However, the assessees moved separate Misc. Applications bearing M.A. No. 42/Chd/2018 & MA No. 40/Chd/2018 for recalling of orders dated 24.5.2017 & 19.5.2017 (supra). Vide a separate order of even date passed in M.A. No.42/Chd/2018 & M/A. No.40/Chd/2018, the orders
ITA No. 101-Chd-2017 & 858-Chd-2016- Sh. Jagmohan Gurbakshish Singh & Universal Print O Pack, Solan
the Income-tax Act, 1961 (in short 'the Act') on account of substantial
expansion of the Units.
During the course of hearing before us, it was brought to our
notice that the issue involved in this appeal has already been
adjudicated by the Hon’ble Himachal Pradesh High Court vide their
order dt. 28 November 2017 in the group of cases with the lead case
titled as M/s Stovekraft India vs. Commissioner of Income Tax, ITA
No.20 of 2015, and it was pointed out that the Hon’ble High Court had
decided the issue in favour of the assessee, holding that there is no bar
in the said section denying the benefit of hundred percent deduction to
new units undertaking substantial expansion. Our attention was drawn
to the relevant conclusions of the Hon’ble High Court in this regard at
para 55 of the order as under:
“55.Thus, in view of the above discussion, these appeals are allowed and orders passed by the Assessment Officer as well as the Appellate Authority and the Tribunal, in the case of each one of the Assesses, are quashed and set aside, holding as under: (a) Such of those undertakings or enterprises which were established, became operational and functional prior to 7.1.2003 and have undertaken substantial expansion between 7.1.2003 upto 1.4.2012, should be entitled to benefit of Section 80-IC of the Act, for the period for which they were not entitled to the benefit of deduction under Section 80-IB. (b) Such of those units which have commenced production after 7.1.2003 and carried out substantial expansion prior to 1.4.2012, would also be entitled to benefit of deduction at different rates of percentage stipulated under Section 80-IC. (c) Substantial expansion cannot be confined to one expansion. As long as requirement of Section 80-IC(8)(ix) is met, there can be number of multiple substantial expansions. (d) Correspondingly, there can be more than one initial Assessment Years.
ITA No. 101-Chd-2017 & 858-Chd-2016- Sh. Jagmohan Gurbakshish Singh & Universal Print O Pack, Solan
We, therefore, do not find any justification at this stage to give the
Assessing officer a second innings to re-examine undisputed facts.
In view of the above discussion, the impugned orders of the
CIT(A) are set aside and the Assessing officer is directed to grant to
the assessee deduction at the rate of hundred percent of its eligible
profits, as per the ruling of the jurisdictional High Court in this regard
in the case of ‘M/s Stovekraft India vs. Commissioner of Income Tax’
(supra).
In the result, the appeals of the assessees, therefore, stands
allowed.
Order pronounced in the Open Court.
Sd/- Sd/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 27.04.2018 Rkk Copy to: 1. The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR