2016 (9) TMI 1604

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....hat the assessee company had three manufacturing units out of which one unit was entitled to the benefit of deduction under section 80-IC of the Act. The assessee had got done certain job work from outside for which the AO had not disallowed the proportionate claim under section 80-IC. The ld. counsel for the assessee submitted that the AO during assessment proceedings had called for the details of job work done from outside and in this respect our attention was invited to PB-4, where a questionnaire dated 22.11.2013 was placed. Our specific attention was drawn to point (iii) of the questionnaire. It was submitted that the assessee filed its reply vide letter dated 27.01.2014, which is apparent from PB-8 and is placed on record, wherein det....

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....hli vs. CIT, passed in ITA No.3637/Del/2014. 3. The ld. DR, on the other hand, heavily placed reliance on the orders of the Authorities below. 4. We have heard the rival contentions and have thoroughly gone through the material placed on record. We find that the AO during assessment proceedings has duly called for information for job work done from outside and assessee had filed complete details as is apparent from PB-4, 8 & 11 and therefore, the AO did not make any disallowance out of deduction under section 80-IC of the Act on proportionate basis, as he must be in the knowledge that in earlier years similar issue had been decided in favour of the assessee, by the Amritsar Bench of the Tribunal vide its order dated 08.06.2011 in ITA ....

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.... the question of law has been admitted by the Hon'ble Punjab & Haryana High Court. For the sake of completeness, the objection of the ld. CIT(A) is reproduced below: (a) The department is in appeal on this issue of law before the Hon'ble Punjab & Haryana High Court, Chandigarh, in ITA No.121 of 2013. The said questions of law raised by the department before the Hon'ble Punjab & Haryana High Court, Chandigarh have been admitted vide order dated 18.09.2014." 6. The ld. Pri. CIT has nowhere held the order to be erroneous or prejudicial to the interests of the Revenue. The Hon'ble Orissa High Court, in the case of CIT vs. Orissa State Financial Corporation, reported at 203 ITR 747 (Ori.), under similar circumstances, had held as und....