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TMI Blog2018 (4) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee are time barred. The record reveals that vide order dated 17th October, 2017, the delay in filing the appeals was condoned. I have heard the learned Representatives of both the parties and perused the material on record. Both the appeals are decided by this common order. The facts are however taken-up from A.Y. 2011- 2012. ITA.No.844/Del./2017 - A.Y. 2011-2012 : 3. The assessee is a Private Limited Company. The Company is engaged in the business of manufacturing of Vibration testing system for defence, aerospace and automobile industries. The assessee has been claiming deduction under section 80IC since A.Y. 2004-2005. But, in this year under consideration, deduction has been claimed, as the assessee has set-off the income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not in working condition. The A.O, therefore, noted that there was no manufacturing activity done by the assessee- company so as to eligible for deduction under section 80IC of the I.T. Act. The total expenses on account of power during the year was shown at Rs. 77,493/- Therefore, it was not possible for assessee-company to do any manufacturing activity. The A.O. noted that principle of resjudicata do not apply to the income tax proceedings. The Ld. CIT(A) allowed the claim under section 80IC to the assessee-company for A.Ys. 2007-2008 and 2008-2009 but for A.Y. 2009-2010, the Ld. CIT(A), disallowed the claim under section 80IC of the I.T. Act. The A.O, therefore, disallowed the manufacturing expenses amounting to Rs. 12,14,242/- and dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... low carry forward of the businesses losses after making computation as per provisions of the Act. 5. The Learned Counsel for the Assessee reiterated the submissions made before the authorities below and submitted that ITAT, Delhi 'A' Bench in the case of the same assessee in Departmental Appeal for A.Ys. 2006-2007, 2007-2008 and 2008-2009 vide order dated 26th July, 2016, confirmed the order of the Ld. CIT(A) in granting deduction under section 80IC of the I.T. Act. The Departmental Appeals have been dismissed. The relevant paras-9 and 10 of the order is reproduced as under: "9. We have perused all the records and taken into account the submissions of both the parties. The CIT(A) has rightly pointed out that the A.O has allowed deductio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs as to Rs. 57,20,000/-. There was manufacturing activity going on during the relevant assessment years. The disallowance was not proper and the reason for disallowance of the benefit under Section 80IC does not sustain. Thus, the CIT(A) has rightly held that A.O was not correct while disallowing the benefit under Section 80IC of the Act. 10. In the result, appeals are dismissed". 5.1. Learned Counsel for the Assessee submitted that in A.Y. 2010-2011, the Ld. CIT(A) vide order dated 15th February, 2016 has directed the A.O. to allow carry forward of these losses in next assessment year as is also allowed in assessment year under appeal. It would, therefore, prove that assessee-company was carrying on manufacturing activity. No Departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, appeals of the Department have been dismissed vide order dated 26th July, 2016 (supra). In the assessment year under appeals, the A.O. relied upon the survey conducted in the premises of the assessee prior to assessment year under appeal, which may not be relevant for this year. Further, Inspector has visited the premises of the assessee-company in assessment year under appeals on 29th December, 2010 and A.O. on 26th November, 2011 and gave report against the assessee-company. But, according to the Learned Counsel for the Assessee, such reports were not confronted to the assessee-company and was not given right to challenge the same. Therefore, such report cannot be read in evidence against the assessee-company. The Ld. CIT(A) in the imp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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