2024 (1) TMI 559 - HC - Income Tax

Eligibility of deductions u/s 80IC - no printing or manufacturing of books in the eligible undertaking at Rudrapur - as per AO assessee did not carry out any printing or binding of books in the eligible undertaking at Rudrapur as neither the paper nor the printed material reached the eligible unit for printing, cutting and binding etc. and no manufacturing activity had actually taken place, therefore, the deduction u/s 80IC not be allowed - according to assessee process of printing and binding of books is certainly carried out in the eligible undertaking of the respondent/assessee at Rudrapur - HELD THAT - The question as to whether the exercise of printing and binding of books is carried out at the eligible undertaking of the respondent/assessee is a question of fact, on which findings of CIT(A) in favour of the respondent/assessee were confirmed by the Tribunal.There being no ground raised by the appellant/revenue alleging perversity in the said findings of facts, this court under Section 260A of the Act cannot venture into that aspect. TDS u/s 194H - trade discount offered by the assessee to the buyer - non deduction of TDS - HELD THAT - The issue under Section 40(a)(ia) of the Act stands already covered in favour of the assessee by way of judgment of the Supreme Court in the case of Ahmedabad Stamp Vendors Association 2012 (9) TMI 298 - SC ORDER

Summary

Issues involved:
The judgment involves the issues of condonation of delay in re-filing the appeal, deduction claimed under Section 80IC of the Income Tax Act, and addition made under Section 40(a)(ia) of the Act.

Condonation of Delay in Refiling the Appeal:
The appellant sought condonation of delay of 245 days in re-filing the appeal after curing the defects raised by the Registry of the court. The delay was attributed to the collation of relevant records. The court allowed the application and condoned the delay in refiling the appeal.

Deduction Claimed under Section 80IC of the Income Tax Act:
The appeals pertained to Assessment Years 2011-12 and 2012-13, brought by the revenue under Section 260A of the Income Tax Act to challenge orders of the Income Tax Appellate Tribunal. The key issue was whether the respondent/assessee was entitled to claim deduction under Section 80IC of the Act due to alleged lack of printing or manufacturing activity in the eligible undertaking at Rudrapur. The Tribunal and CIT(A) ruled in favor of the respondent/assessee, finding that the printing and binding of books did indeed take place at the eligible undertaking. The court upheld these findings, emphasizing that the determination of this fact was within the jurisdiction of the lower authorities and no substantial question of law arose for consideration. Consequently, both appeals were dismissed.

Addition Made under Section 40(a)(ia) of the Act:
The Assessing Officer disallowed deductions under Section 80IC for both assessment years, asserting that no printing or binding of books occurred at the eligible undertaking. Additionally, the AO added amounts under Section 40(a)(ia) due to trade discounts offered by the respondent/assessee being treated as commission. However, the CIT(A) and the Tribunal ruled in favor of the respondent/assessee, holding that the deductions were allowable and the trade discounts were genuine. The court found no grounds for challenging these factual findings and dismissed the appeals.