2017 (11) TMI 1194

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....ppeal for both the Assessment Years are common and the issues are also common on the same facts. Therefore, both the appeals are taken up together and disposed off in common order for the sake of convenience. 3.0 The only issue in these appeals is whether the assessee is carrying on any manufacturing activity or not at Dehradun Unit which is eligible for deduction u/s.80IC. The Revenue has disallowed the deduction u/s.80IC for the AY 2010-11 amounting to Rs. 4,29,58,857/- and for the AY 2011- 12 amounting to Rs. 1,58,86,862/, on the ground that the assessee is not carrying manufacturing activity at Dehradun Unit and claiming the false deduction u/s.80IC from the Dehradun Unit. The assessee is having two manufacturing units one is at Chen....

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....he assessee is not carrying on any manufacturing activity in Dehradun Unit, which was factually incorrect. He submitted that the assessee has carried on manufacturing activity at Dehradun Unit which could be seen from the Profit & Loss A/c wherein the assessee has transferred less quantity of stocks, the separate VAT is paid and separate books of accounts are maintained. Therefore, the Ld.AR contended that facts of the earlier order in the assessee's own case is not applicable for the AY under consideration and requested to allow the appeal of the assessee. On the other hand, the Ld.DR taken our attention to the details of various expenses debited to the Profit & Loss A/c and argued that it is evident from the expenses debited to the Dehrad....

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....Salaries & wages 79,63,574 67,64,229 Repairs & maintenance 33,27,731 55,950 Power consumption 28,04,127 46,245 Finance charges 29,516 2,37,255 Director's remuneration 6,00,000 9,00,000 Fixed assets WDV Addn Del WDV Addn. made Del Assets acquired 60183187 11692904 4839904 1109817 363590 - Out of the above moulds 32646054 6047918 - 249080 57590 - 7.1 For the AY 2011-12 also the AO has furnished the details of various expenses which are reproduced as under:   Chennai Unit (Non-80IC Unit) Dehradun Unit (80IC Unit) Sales 323,72,693 16,85,49,406 Labour receipts 53,50,893 - Other receipts 25,71,745....

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.... 46,245/- which clearly shows no manufacturing activity is being done at Dehradun unit. Similarly other production expenses accounted for in Dehradun unit were meager or nominal compared to Chennai unit, though the assessee is declaring huge sales from the Dehardun unit and compared to Chennai unit. Therefore we are of the considered opinion that the assessee is not carrying on any manufacturing activity in Dehradun Unit and the Hon'ble ITAT's Order in the assessee's own case for the AYs 2007-08 & 2008-09 is squarely applicable. We reproduce here under the relevant paragraphs of the order of this Tribunal in ITA Nos.1326 & 1327/Mds/2012 & ITA No.917/Mds/2013 dated 17.07.2013 for the sake of convenience as under: 8. The facts and ci....