2022 (9) TMI 1143

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.... of the case in deleting the addition of Rs.1,75,43,557/- on account of disallowance u/s 80IC of the Act." 3. Brief facts of the case are that the assessee company is engaged in the business of induction Head Seal Cap liner material and induction wads. Return declaring an income of Rs.4,22,56,630/- was filed on 27.11.2014. The case was selected for scrutiny. The AO has computed the assessment u/s 143(3) of the Income-tax Act, 1961 (for short 'the Act') vide order dated 30.09.2016 after making disallowance u/s 80IC at Rs.1,75,43,557/- and addition on account of delayed payment of ESI/EPF at Rs.1,49,581/-. Total income was assessed at Rs.5,99,49,765/-. During the year under consideration, the assessee has claimed deduction u/s 80IC of Rs.1....

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.... was allowed to the appellant u/s 80IC in the AY 2007-08 to 2010-11, 2012-13 & 2013-14 by CsIT(A). The AO has disallowed the claim with the observation that the product manufacture by the appellant comes under the Schedule 13 at S.No. 19 which is a negative list of product on which section 80IC is not applicable, as the product falls under the chapter 48 of Central Excise. The appellant has submitted that AO did not notice that as per chapter 48 it is specifically provided that metal foil backed with paper or paper board are not covered under chapter 48. The appellant has obtained the legal opinion regarding classification of induction heat seals (HIS) cap liners and as per the legal opinion of Excise consultant aluminum foil in the form of....

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.... 5. Against this order, Revenue is in appeal before us. We have heard both the parties and perused the record. 6. Ld. DR for the Revenue relied upon the grounds of appeal and the order of the AO. However, he did not dispute the proposition that the same issue has been decided by the ITAT in assessee's own case in favour of the assessee for AY 2010-11 & 2015-16. 7. Per contra ld. Counsel of the assessee submitted that ITAT in assessee's own case for earlier periods has decided the issue in favour of the assessee and hence he pleaded that the matter is covered in favour of the assessee. 8. In this regard, we may gainfully refer to the decision of ITAT in assessee's own case in ITA No.2178/Del/2019 for AY 2015-16 vide order dated 11.....

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....ff 7607-20-90 of CETA and while referring to the circular No. 28/89 dated 26/9/1989 and 141/2/2003 dated 6/10/2003 issued by the Government of India, Ministry of Finance (Department of Revenue), New Delhi allowed deduction under section 80 IC of the Act to the assessee. Revenue is therefore in this appeal. 4. At the outset, Ld. AR submitted that the Ld. CIT(A) followed the Board Circulars for granting relief to the assessee. He further submitted that under similar set of facts for the assessment years 2010-11 and 2012-13 a coordinate Bench of this Tribunal dealt with this issue in assessee's own case in ITA No. 5994/Del/2014 and 6550/Del/2015 and by order dated 18/02/2019 Tribunal returned a finding that inasmuch as the industr....