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TMI Blog2023 (4) TMI 893X X X X Extracts X X X X X X X X Extracts X X X X ..... e direction u/s 144A issued by the Ld. Addl. CIT Range-7 New Delhi, it is observed that he perused the assessment record and recorded the finding after seeing the material in the Schedule filed that heads are bifurcated in three units i.e. unit 1, 2 and 3 which shows that the assessee has maintained/furnished three separate accounts for the purpose of calculating the profits and deduction thereon. ACIT further noted that even during re-assessment proceedings the assessee submitted Form 10CCB alongwith letter dated 15.10.2018 and audited unit-wise final accounts. If that be so, the assessee s case is fully covered in favour of the assessee by the decision of the Hon ble Supreme Court in CIT vs. G.M. Knitting Industries (P) Ltd [ 2015 (11) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unts for the purpose of calculating the profits of the units for which deduction under section 80IC of the Act was claimed and the assessee had not furnished Form 10CCB at the time of original assessment. Accordingly, notice under section 148 of the Act was issued in response to which the assessee filed return declaring total income of Rs. 26,04,895/- on 21.03.2018. During re-assessment proceedings, the assessee objected to the reopening of the assessment and even sought direction under section 144A of the Act from the Addl. CIT, Range-7, New Delhi which was received by the Ld. Assessing Officer ( AO ) on 30.11.2018. In para 7, the Ld. AO reproduced the relevant extract of the direction as under:- In this regard it is to be mentioned t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g with return of income had not been fled but same was filed before final order of the assessment was made, the assessee was entitled to claim deduction under section 80-IB. In view of the above judgment, you are directed to examine the facts of the case and if the facts are similar, allow deduction claimed u/s 801C if no other default is found and complete the assessment as per provisions of the law. 3.1 Vide letter dated 15.10.2018, the assessee submitted an affidavit stating therein that separate audited financial accounts of all the three units as well as certificate in Form 10CCB for the financial year (AY 2011-12) were filed before the Ld. AO during the course of original assessment proceedings. 3.2 Still the Ld. AO was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O and the AO has not brought any material or argument on record to differ with the directions issued u/s 144A of the Act. Even if the AO had difference of opinion with the Addl. CIT, still the directions issued u/s 144A of the Act, are binding on the AO. Keeping in view all these facts, I do not find any reason to sustain the addition and accordingly, the addition made by the AO is deleted and the grounds of appeal are allowed. 5. The Revenue is aggrieved and is before the Tribunal on the ground that the Ld. CIT(A) has erred in deleting the addition of Rs. 15,00,710/- under section 80IC of the Act. 6. The Ld. DR relied on the order of the Ld. AO. 7. The Ld. AR supported the order of the Ld. CIT(A). He drew our attention to the wr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 and 3 which shows that the assessee has maintained/furnished three separate accounts for the purpose of calculating the profits and deduction thereon. The Ld. Addl. CIT further noted that even during re-assessment proceedings the assessee submitted Form 10CCB alongwith letter dated 15.10.2018 and audited unit-wise final accounts. If that be so, the assessee s case is fully covered in favour of the assessee by the decision of the Hon ble Supreme Court in CIT vs. G.M. Knitting Industries (P) Ltd. (2015) 376 ITR 456 (SC) as also by the decision of the Hon ble Delhi High Court in CIT vs. Centimeters Electricals Pvt. Ltd. 317 ITR 249 (Delhi). 10. We, therefore, for the reasons set out above decline to interfere and finding no substance in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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