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Income Tax Appellate Tribunal, DIVISION BENCHES ‘A’, CHANDIGARH
Before: MS. DIVA SINGH & Dr.B.R.R.KUMAR
PER DIVA SINGH, JM
The present appeal has been filed by the assessee assailing the correctness of the order dated 17/07/2017 of CIT(A) Shimla HP pertaining to 2014 – 10 assessment year on the following ground : “The ld. CIT(A) is wrong in disallowing the benefit of substantial expansion u/s 80IC(2) by holding that benefit of substantial expansion is allowable only to the undertaking which were existing as on 07.01.2003.” 2. The Ld. AR inviting attention to the impugned order submitted that the point at issue is fully covered in favour of the assessee by virtue of the decision of the jurisdictional High Court dated 28/11/2017 in the case of M/s Stove Craft India Versus CIT-V and others in ITA 20 to 24/2015. Inviting attention to the assessment order dated 20/12/2017 in 2015-16 assessment year passed under Section 143 (3) in the case of the assessee. Referring to the copy of said order filed, it was submitted that following the decision of the jurisdictional High Court, the Assessing Officer considering the facts of the case, allowed the claim of the assessee @ 100% under section 80IC. Accordingly, it was his submission that on facts and law, the issue was fully covered in favour of the assessee. 3. The Ld. DR considering the assessment order passed by the AO in the scrutiny proceedings did not pose any objection.
ITA 1385/CHD/2017. A.Y. 2014-15 Page 2 of 2
We have heard the submissions and perused the material available on record. It is seen that the assessee in the year under consideration was deriving income from manufacturing of tablets, capsules, syrups etc. from Badi- Pinjore Highway, Tehsil Kasauli, District Solan (HP). After having claimed 100% deduction in the initial 5 years, the assessee thereafter claimed to have carried out substantial expansion and they claimed 100% deduction of eligible profits. The claim was rejected by the Assessing Officer and the deduction was restricted to 25% of the eligible profits under section 80IC. In the light of the decision of the jurisdictional High Court which has been taken into consideration by the Assessing Officer himself in the immediately subsequent assessment year i.e. 2015–16 wherein the AO considering the claim of substantial expansion in 2015-15 which happened to be the 8th year, has granted 100% deduction following the decision of the jurisdictional High Court in the order passed u/s 143 (3) dated 20/12/2017. We find that the claim of the assessee is allowable in law and facts. In the peculiar facts and circumstances of the present case the impugned order needs is set aside with the direction to the Assessing Officer to grant necessary relief on facts as already considered in 2015-16 assessment year and allow the claim of the assessee @ of 100% deduction under section 80IC. The said order was pronounced in the Open Court at the time of hearing itself. 4. In the result the appeal of the assessee is allowed. Order Pronounced in the Open Court on 28th Feb., 2018.
Sd/- Sd/-
( Dr.B.R.KUMAR) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER ‘Poonam’ Copy to: 1. The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR
Asstt. Registrar ITAT Chandigarh.