2017 (10) TMI 1386 - AT - Income Tax

Deduction u/s 80IC - assessee exhausted claim to extent of 100% eligible profit for five years period - assessee again claimed for 9th year of production by claiming substantial expansion of the unit in assessment year - Held that - The assessee is the proprietor of Windsor Industries which is engaged in the business manufacturing and trading in EPS Thermocole Moulded Packaging Disposal Glass and BOPP Tapes at Baddi since 29.6.2004 and the initial assessment year for claim of deduction u/s 80IC was assessment year 2005- 06. The assessee has already claimed deduction under section 80IC to the extent of 100% eligible profit for five years period from assessment year 2005-06 to 2009-10. The assessee had again claimed 100% deduction against eligible profit in the relevant assessment year 2013-14, which was 9th year of production by claiming substantial expansion of the unit in assessment year 2009-10. Relying upon the aforesaid decision of the ITAT in the case of Hycron Electronics (2015 (6) TMI 725 - ITAT CHANDIGARH), the claim was rejected by the lower authorities correctly - decided against assessee.

Summary

Issues:
- Adjournment application filed by the appellant
- Claim of deduction under section 80IC of the Income Tax Act, 1961

Adjournment Application:
The appellant filed an adjournment application citing the last date for filing various tax-related documents as a reason. However, the tribunal noted that no plausible reason was given for adjourning the case, and it was found that adjournment had been sought on previous occasions as well. Consequently, the tribunal rejected the adjournment application, indicating that the appellant was not serious in pursuing the appeal and proceeded to decide the case on merits.

Claim of Deduction under Section 80IC:
The appellant, a proprietor of a business engaged in manufacturing and trading, claimed deduction under section 80IC of the Income Tax Act for the relevant assessment year. The appellant had already claimed the deduction for the maximum eligible profit for five years. In the ninth year of production, the appellant claimed substantial expansion of the unit to avail of the deduction again. The tribunal noted that the issue addressed in the present appeal was identical to a previous decision by a Co-ordinate Bench. Relying on the precedent set in the earlier case, the tribunal rejected the appellant's claim for deduction under section 80IC, stating that the issue on facts and law was identical, and the claim was not sustainable based on the circumstances presented.

Conclusion:
The tribunal dismissed the appeal of the appellant based on the rejection of the adjournment application and the denial of the claim for deduction under section 80IC of the Income Tax Act. The decision was pronounced in the Open Court on 12.10.2017.