Income Tax Appellate Tribunal - Chandigarh
Surya Telecom Pvt. Ltd., Panchkula vs Department Of Income Tax on 31 December, 2013
IN THE INCOME TAX APPELLATE TRIBUNAL
CHANDIGARH BENCH 'A', CHANDIGARH
BEFORE SHR I T.R.SOOD, ACCOUNTANT MEMBER
AND Ms. SUSHMA CHOWLA, JUDICIAL MEMBER
ITA No.1110 /Chd/2012
Assessment Year : 2005-06
The A.C.I.T., Vs. M/s Surya Telecom Pvt. Ltd.,
Panchkula Circle, SCO 39, Sector 3,
Panchkula. Panchkula
PAN: AAHCS3041F
(Appellant) (Respondent)
Appellant by : Shri Manjit Singh, DR
Respondent by : Shri Ajay Jagga
Date of hearing : 31.12.2013
Date of Pronouncement : 31.12.2013
O R D E R
Per SUSHMA CHOWLA, J.M. :
The appeal filed by the Revenue is against the order of the Commissioner of Income-tax (Appeals), Panchkula dated 29.08.2012 r e l a t i n g t o a s s e s s m e n t ye a r 2 0 0 5 - 0 6 a g a i n s t t h e o r d e r p a s s e d u n d e r section 143(3) of the Income Tax Act, 1961 (in short 'the Act').
2. The only ground of appeal raised by the Revenue reads as under:
"Whether on the facts and circumstances of the case, the Ld. CIT(A) was justified in holding that the assessee is entitled to deduction under section 80IC of the Income Tax Act, 1961, despite the fact that the Assessing Officer in the assessment order has clearly held that the assessee is not engaged in the process of manufacturing and is merely engaged in the supply of finished goods to government agencies?
3. The brief facts of the case are that the assessee had claimed deduction u/s 80IC of the Income Tax Act. During the assessment 2 p r o c e e d i n g s f o r a s s e s s m e n t ye a r 2 0 0 6 - 0 7 , i t w a s o b s e r v e d t h a t n o manufacturing / production activity was taking place at the premises of the assessee and deduction under section 80IC of the Act was denied to the assessee. Following the same the Assessing Officer accordingly disallowed the deduction claimed u/s 80IC of the Act though similar c l a i m o f t h e a s s e s s e e r e l a t i n g t o a s s e s s m e n t ye a r 2 0 0 6 - 0 7 w a s a l l o w e d b y the CIT(A). The Assessing Officer observed that the appeal against t h e o r d e r o f T r i b u n a l r e l a t i n g t o a s s e s s m e n t ye a r 2 0 0 6 - 0 7 w a s p e n d i n g and the same was not to be adopted for computing the income of the assessee for the year under consideration. The CIT(A) noted the pleading of the assessee in para 4.1 at page 2 of the appellate order. The claim of the assessee was that the deduction u/s 80IC of the Act relating t o a s s e s s m e n t ye a r 2 0 0 6 - 0 7 h a s b e e n d e c i d e d i n f a v o u r o f t h e a s s e s s e e both b y the CIT(A) and the Tribunal. The Tribunal in ITA No. 1 8 2 / C h d / 2 0 1 0 v i d e o r d e r d a t e d 3 0 . 8 . 2 0 1 0 r e l a t i n g t o a s s e s s m e n t ye a r 2 0 0 6 - 0 7 h a d h e l d t h a t t h e a s s e s s e e w a s c a r r yi n g o n o n e o f t h e a c t i v i t y o f manufacturing process, which itself is manufacturing and hence the assessee is entitled to deduction u/s 80IC of the Act. The CIT(A) following the order of the Tribunal in assessee's own case relating to a s s e s s m e n t ye a r 2 0 0 6 - 0 7 a l l o w e d t h e c l a i m o f t h e a s s e s s e e u / s 8 0 I C o f the Act. The Revenue is in appeal against the said order of CIT(A).
4. The learned A.R. for the assessee at the outset pointed out that the issue in the ground of appeal raised by the assessee is covered by the o r d e r o f t h e T r i b u n a l i n a s s e s s e e o w n c a s e r e l a t i n g t o a s s e s s m e n t ye a r 2006-07 in ITA No.182/Chd/2010, order dated 30.8.2010 and in ITA No.263/Chd/2011 relating to assessment ye a r 2004-05, order dated 26.4.2011.
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5. We have heard the rival contentions and perused the record. The issue in respect of deduction allowable u/s 80IC of the Act in assessee's case arose i n a s s e s s m e n t ye a r 2006-07 before the Tribunal. The Chandigarh Bench of the Tribunal vide its order dated 30.8.2010 in ITA No. 182/Chd/2010 held the assessee to be eligible for deduction u/s 80IC of the Act. The observations of the Tribunal are incorporated under para 7.1 at pages 5 to 7 of the appellate order and are not being reproduced f o r t h e s a k e o f b r e v i t y.
6. Following the ratio laid down by the Tribunal in ITA No. 182/Chd/2010 vide order dated 30.10.2010 in assessee's own case relating to assessment ye a r 2006-07, which has been followed in a s s e s s m e n t ye a r 2 0 0 4 - 0 5 ( s u p r a ) , w e u p h o l d t h e o r d e r o f C I T ( A ) i n allowing deduction u/s 80IC of the Act for the impugned assessment year. The ground of appeal raised by the Revenue is thus dismissed.
7. In the result, appeal of the Revenue is dismissed.
Order pronounced in the open court on this 31st day of December, 2013.
Sd/- Sd/-
(T.R.SOOD) (SUSHMA CHOWLA)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated : 31 s t December, 2013
*Rati*
Copy to: The Appellant/The Respondent/The CIT(A)/The CIT/The DR.
Assistant Registrar, ITAT, Chandigarh 4