High Valley Industries Corporation, New Delhi Vs DCIT, Circle(NowACIT, Central Circle-7),, Parwanoo

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH “C” NEW DELHI

BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER
AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER
I.T.A No.5991/Del/2017
Assessment Year:2013-14

M/s High Valley Industries Corporation,414, Dmall, Netaji Subhash Place, Pitampura, Delhi.
Appellant

Vs.

DCIT Central Circle 7 Delhi. PAN No. AADFH8325A
Respondent

Assessee by Sh. Ved Jain, Adv.
Sh. Ashish Goel, CA

Revenue by Ms. Parul Singh, Sr. DR
Date of hearing: 17.11.2020
Pronouncement on 18.11.2020

O R D E R

PER BHAVNESH SAINI, J.M.

This appeal by assessee has been directed against the order of Ld. CIT(Appeals), Shimla dated 28/10/2016 for A.Y. 2013-14, challenging the order of the Ld. CIT(A) in confirming the action of the AO in allowing deduction u/s 80-IC to Rs. 61,09,281/- as against Rs. 2,44,37,125/-.

2. Briefly the facts of the case are that assessee firm filed its return of income declaring Nil income after claiming deduction u/s 80-IC amounting to Rs. 2,44,37,125/-. The assessee firm is engaged in the business of manufacturing of self adhesive tapes and trading of polymers/resins. The assessee started its manufacturing activity/operation on 16th August, 2005 and initial assessment year for claim of deduction u/s 80-IC of the Act was A.Y. 2006-07. The assessee had already claimed deduction u/s 80-IC to the extent of 100% of the eligible profit for 5 years period starting from AY 2006-07 to AY 2010-11. It was noticed that the assessee firm had again claim 100% deduction against eligible profits in the assessment year under appeal which is the 8th year of production of the firm by claiming to have carried out substantial expansion in AY 2011-12. The AO held that assessee is eligible for deduction u/s 80-IC only @ 25% as against the claim of 100% made by the assessee. The AO followed the order of ITAT Chandigarh Bench in the case of M/s Hycron Electronics & Others dated 27th May,2015. The Ld. CIT(A) also following the above order of the ITAT Chandigarh Bench dismissed the appeal of assessee.

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