Tribunal Upholds Deduction under Section 80IC, Rejects Revenue Department's Appeal

The Tribunal upheld the Commissioner's decision to allow the deduction u/s. 80IC in favor of the assessee, emphasizing the similarity of facts with a previous case. The Tribunal found no reason to interfere with the order under challenge, leading to the dismissal of the Revenue Department's appeal.

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Issues:
1. Disallowance of deduction u/s. 80IC of the Income-tax Act, 1961 for the assessment year 2013-14.

Analysis:
The appeal was filed by the Revenue Department against the order passed by the Commissioner of Income-tax (Appeals) for disallowing the deduction claimed by the assessee u/s. 80IC of the Act. The assessee, engaged in manufacturing and assembling cell phone batteries, chargers, and accessories, declared nil income in the return filed. The Assessing Officer disallowed the deduction claimed by the assessee under section 80IC mainly on the grounds that the articles manufactured did not fall under the 14th Schedule and the assessee was merely assembling products, not manufacturing. The Commissioner, relying on a previous Tribunal order for the A.Y. 2012-13, accepted the claim of the assessee, stating that the assessee had set up a manufacturing unit before the sunset date and fulfilled the conditions prescribed under section 80IC of the Act. The Tribunal concurred with the Commissioner's decision, noting that the facts of the current case were similar to the previous case, and upheld the order, finding no perversity, impropriety, or illegality. Consequently, the appeal filed by the Revenue Department was dismissed.

In conclusion, the Tribunal upheld the Commissioner's decision to allow the deduction u/s. 80IC in favor of the assessee, emphasizing the similarity of facts with a previous case. The Tribunal found no reason to interfere with the order under challenge, leading to the dismissal of the Revenue Department's appeal.

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