Income Tax Appellate Tribunal - Chandigarh
Jagmohan Gurbakshish Singh, Baddi vs Dcit, Parwanoo on 27 April, 2018
IN THE INCOME TAX APPELLATE TRIBUNAL
CHANDIGARH BENCHES, CHANDIGARH
BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER &
Ms. ANNAPURNA GUPTA, ACCOUNTANT MEMBER
ITA No. 101/Chd/2017
Assessment Year: 2013-14
Shri Jagmohan Gurbakshish Singh, Vs. The DCIT, Circle,
Prop. Budget Signs, Parwanoo
Baddi, Distt. Solan
PAN No. AKNPS4042H
&
ITA No. 858/Chd/2016
Assessment Year: 2012-13
M/S Universal Print O Pack, Vs. The ITO,
Vill Kishanpura Tehsil Nalagarh Baddi, H.P.
Distt. Solan H.P.
PAN No. AKNPS4042H
(Appellant) (Respondent)
Appellant By : Sh. Parikshit Aggarwal, CA
Respondent By : Sh. Manjit Singh, Sr.DR
Date of hearing : 27.04.2018
Date of Pronouncement : 27.04.2018
ORDER
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 3 t h e I n c o me - t a x A c t , 1 9 6 1 ( i n s h o r t 't h e A c t ') o n a c c o un t o f s u b s t a n t i al e x p a n s i o n o f t h e Un i t s .
4. D u r i n g t h e c o u r s e o f h e a r i n g b ef o re u s , i t w a s b r o u g h t t o o u r notice that the issue involved in this appeal has already been a d j u d i c a t e d b y t h e H o n ' b l e H i ma c h a l P r a d e s h H i g h C o u r t v i d e t h e i r o r d e r d t . 2 8 N o v emb e r 2 0 1 7 i n t h e g r o u p o f c a s e s w it h t h e l e a d c a s e t i t l e d a s M / s S t o v e k r a f t I n d i a v s . Co m mi s s i o n e r o f I n c o me T a x , I T A N o . 2 0 o f 2 0 1 5 , a nd i t w a s p o i n t e d o u t t h a t t h e H o n ' b le H i g h C o u r t h a d d e c i d e d t h e i s s u e in f a v o u r of t h e a ss e s s e e , h o l d i n g t ha t t h e r e i s n o b a r i n t h e s a i d s e c t i o n d e n yi n g t h e b e n e f i t of h u n d r e d p e rc e n t d e d u c t i o n t o new units undertaking substantial expansion. Our attention was drawn t o t h e r e l e v a n t c on c l u s i o n s of t h e Ho n ' b l e H i g h C o u r t i n t h i s re g a r d a t p a r a 5 5 o f t h e o r de r a s u n d e r :
"55.Thus, in view of the above discussion, these appeals a r e a l l o w e d a n d or d e r s p a s s e d b y t he A s s e s s m e n t O f f i ce r a s well as the Appellate Authority and the Tribunal, in the case o f e a c h o n e o f th e A s s e s s e s , a r e q u a s h e d a n d s e t a s i d e , holding as under:
(a ) S u c h o f t h o s e u n d e r t a k i n g s o r e n t e r p r i s e s w h i c h w e r e e s t a b l i s h e d , b e c am e o p e r a t i o n a l a n d f u n c t i o n a l p r io r t o 7 . 1 . 2 0 0 3 a n d h a v e u n d e r t a k e n s u b s t an t i a l e x p a n s i o n b et w e e n 7 . 1 . 2 0 0 3 u p t o 1 .4 . 2 0 1 2 , s h o u l d be e n t i t l e d t o b e ne f i t o f S e c t i o n 8 0 - I C o f th e A c t , f o r t h e p e ri o d f o r w h i c h t h e y w e r e n o t e n t i t l e d t o t h e b e n e f i t o f d e d u c t i on u n d e r S e c t i o n 8 0- I B .
(b ) S u c h o f t h o s e u n i t s w h i c h h a v e c o m m e n c e d p r o d u c t i o n after 7.1.2003 and carried out substantial expansion prior t o 1 . 4 . 2 0 1 2 , w o u l d a l s o b e e n t i t l e d to b e n e f i t o f d e d u c ti o n a t d i f f e r e n t r a t e s o f pe r c e n t a g e s t i p u l a te d u n d e r S e c t i o n 80 - I C . (c ) S u b s t a n t i a l e x p a n s i o n c a n n o t b e c o n f i n e d t o o n e e x p a n s i o n . A s l o n g a s r e q u i r e m e n t o f S e c t i o n 8 0 - I C (8 ) (i x ) i s m e t , t h e r e c a n b e n u m b e r o f m u l t i p l e s u b s t a n t i a l e x p a ns i o n s . (d ) C o r r e s p o n d i n g l y , t h e r e c a n b e m o r e t h a n o n e i n i t i a l Assessment Years.
ITA No. 101-Chd-2017 & 858-Chd-2016- Sh. Jagmohan Gurbakshish Singh & Universal Print O Pack, Solan 5 We , t h e r e f o r e , d o n o t f i n d a n y j u s t i f i c a ti o n a t t h i s st a g e t o g i v e t h e A s s e s s i n g o f f i ce r a s e c o n d i n n i n g s t o r e - e x a mi n e u n d i s p u t e d f a ct s .
7. I n v i e w o f t h e ab o v e d i s c u s s i o n , t h e i mp u g n e d o r d e r s o f t he C I T ( A ) a r e s e t a s i d e a n d t h e A s s e s s i n g o f f i c e r i s di r ec t e d t o g r a n t t o the assessee deduction at the rate of h u n d r e d p e r c en t o f i t s e l i g i b le p r o f i t s , a s p e r t h e r u l i n g o f t h e j u r i sd i c t i o n a l H i g h C o u r t i n t h i s r e g a r d i n t h e c a s e of ' M /s S t o v e k r af t I n d i a v s . C o m mi s s i o n e r o f I n c o me T a x ' (supra).
8. I n t h e r e s u l t , t he a p p e a l s of t h e a s s e s s e e s , t h e r ef o r e , s t a n d s 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