9911796707
TMI Blog2013 (12) TMI 830X X X X Extracts X X X X X X X X Extracts X X X X ..... learned CIT(A) was justified in directing the Assessing Officer to allow deduction under Section 80IC of the Act X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellant had claimed deduction u/s 80IC at Rs.2,77,80,153/- for the year under consideration in respect of its unit at Kalambh, H.P. It was explained by the appellant during the assessment proceedings that it is manufacturing Poly Vinyl Alcohol which is used for manufacturing of paper and pulp. The AO has observed that the above item falls under the prohibited category as per the Thirteenth Schedule. The AO has accordingly disallowed the deduction under Section 80IC. 5.2 In this regard, it is submitted by the ld. AR that the appellant has been claiming deduction u/s 80IC since its inception in AY 2001-02 which has been allowed by the Department in all the years including in scrutiny assessments u/s 143(3) made for AYs 2001-02, 2003-04 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise classifications for the items being manufactured by the appellant company and has erroneously held the same to be covered under the negative list. The AO's observations in the assessment order appear to be self-contradictory and do not show how the said items are included in the negative list. The AO has not given any reason for discarding the appellant's submissions. As such, the disallowance made by the AO appears to be misconceived. Further, as pointed out by the ld.AR, which was also pointed out before the AO at the assessment stage, this is the ninth year of deduction u/s 80IC in the case of the appellant and the department has allowed the appellant's claim of deduction u/s 80IC in all the earlier years under similar facts includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Officer to deny the deduction under section 80-I on the ground of non-fulfillment of the conditions under section 80-I(2) without disturbing the assessment for the assessment years relevant to the previous years in which the second and third units were established." 6. That the Hon'ble Apex Court in the case of CIT Vs. Excel Industries Ltd., vide Civil Appeal No.125 of 2013, while reiterating their decision in the case of Radhasoami Satsang Saomi Bagh Vs. CIT - [1992] 193 ITR 321 and Parashuram Pottery Works Ltd. Vs. ITO - [1977] 106 ITR 1, held as under:- "31. It appears from the record that in several assessment years, the Revenue accepted the order of the Tribunal in favour of the assessee and did not pursue the matter any further b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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