2015 (12) TMI 24

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.... 8,24,335/- claimed by the assessee under section 80IB of the Income tax Act 1961 for its Unit No. II without appreciating the fact that the assessee Unit No. II is only an extension of Unit No. I and therefore Unit II is not entitled for 100% education under section 80IB of the Income tax Act 1961. 2. Whether on the facts and in the circumstances of the case, and in law, the Ld. CIT (A) erred in allowing deduction of Rs. 8,24,335/- claimed by the assessee under section 80IB of the Income tax Act 1961 for its Unit No.II without appreciating the fact that the assessee had diverted the expenses of its Unit II to Unit I and had reduced the taxable profits of Unit I and increased the profit of Unit II and claimed 100% exemption on the ....

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....isallowed in the assessment order passed for the assessment year 2003-04 to 2007-08, by holding that Unit-II is not a new unit but an extension of Unit-I, disallowed assessee's claim under section 80IB. Being aggrieved of such disallowance, the assessee preferred appeal before the first appellate authority. 4. In the course of hearing before the first appellate authority, it was submitted by the assessee that while deciding assessee's appeal for the assessment year 2003-04, the Tribunal, vide order dated 25th February 2010, passed in ITA no.5928 and 6826/Mum./2006, has allowed assessee's claim of deduction under section 80IB of the Act by holding that Unit-II of the assessee is a separate industrial undertaking, hence, entitl....

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....8, order dated 8th June 2012. The finding of the Tribunal in the said order is reproduced herein below:- "5. We observe that in respect of deduction u/s 80IB of the Act of the assessee, the Tribunal considered the said issue in A.Y. 2003-04 vide its order dated 25.2.2010 in I.T. Act nos.5928 & 6826/M/2006 and has held that Unit-II is new one and is a separate industrial undertaking which is entitled to deduction u/s 80IB of the Act @ 100%. However, A.O. made the disallowance for the assessment year under consideration u/s 80IB of the Act by following his order for A.Y. 2003-04. In view of fact that the Tribunal has decided the issue in favour of the assessee to hold that Unit-II of the assessee is a separate industrial undertaking ....