2020 (1) TMI 1522 - AT - Income Tax

Deduction u/s 80IC - AO held that the products manufactured by the assessee fall under schedule 13 (at serial No. 19) which is a negative list and, therefore, profit derived from the manufacture of these products is not eligible for deduction u/s 80 IC - HELD THAT - We find that the issues involved in this matter are directly and substantially covered in assessee s own case in earlier years 2019 (2) TMI 1191 - ITAT DELHI and while respectfully following the same we hold that the assessee is entitled to deduction under section 80 IC of the Act - Decided in favour of assessee.

Summary

Issues:
Challenge to deduction under section 80IC of the Income Tax Act, 1961 for the assessment year 2013-14.

Analysis:
The appeal was filed against the order passed by the Commissioner of Income Tax (Appeals) for the assessment year 2013-14, regarding the deduction under section 80IC of the Income Tax Act, 1961. The appellant, a company engaged in manufacturing, claimed a deduction under section 80IC. However, the Assessing Officer disallowed the deduction, stating that the products manufactured by the appellant fell under a negative list, making them ineligible for the deduction.

Upon appeal, the Commissioner found that the products did not fall under the negative list as per specific tariff classifications. Referring to government circulars, the Commissioner allowed the deduction under section 80IC. This decision led to the Revenue challenging the order through an appeal.

During the proceedings, it was highlighted that similar issues were addressed by the Tribunal in the appellant's case for earlier assessment years. The Tribunal had previously allowed the deduction under section 80IC based on the establishment of the industrial unit and the classification of the products. The Tribunal's decision was influenced by the judgments of the Hon'ble Apex Court and High Court, supporting the appellant's entitlement to the deduction.

Considering the consistency in decisions and the identical nature of the facts, the Tribunal ruled in favor of the appellant. The Tribunal upheld that the appellant was entitled to the deduction under section 80IC, directing the deletion of the disallowed amount. The grounds of appeal were addressed accordingly, leading to the allowance of the appeal.

In conclusion, the Tribunal allowed the appeal, emphasizing the application of consistent legal principles and previous judgments in determining the eligibility of the appellant for the deduction under section 80IC. The decision was based on the specific tariff classifications and the interpretation of relevant circulars and legal precedents.