2023 (4) TMI 893

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.... and in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 15,00,710/- u/s 80IC of the Income Tax Act, 1961." 3. The facts in brief are that for the AY 2011-12 the assessee individual e-filed his original return on 28.09.2011 declaring income of Rs. 26,04,895/-. It was processed under section 143(1) of the Income Tax Act, 1961 (the "Act"). Later on the case was selected for scrutiny and assessment was completed on 17.01.2014 on total income of Rs. 26,04,895/- allowing therein the assessee's claim of exemption of Rs. 15,00,710/- under section 80IC of the Act. The assessment was reopened under section 147 of the Act by recording the reason that the assessee has not maintained separate accounts for the purpose of calculating the pr....

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....ion thereon. Further the asseessee has claimed that mandatory certificate of 10CCB was submitted during original assessment proceeding also. It is further noted that even during assessment proceedings u/s 147 the assessee has submitted the form 10CCB as Annexure 9 and 10 alongwith its letter dated 15-10-18 and audited unit wise final accounts as Annezure 11. The Hon'ble Supreme court in C1T v G.M. Knitting Industries (P) Ltd. (2015(11) TMI 397- SUPREME COURT) dismissed the appeal of Revenue and confirmed the view taken by Madras High Court in case of CIT V. AKS Alloys (P.) Ltd. [2011 (12) TMI 39- MADRAS HIGH COURT] holding that "Even though necessary certificate in Form 10CCB along with return of income had not been fled but same wa....

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....n-compliance with the directions issued u/s 144A of the Act and also on the merits of the case. On perusal of the complete facts, it is observed that in the original assessment order, the AO has specifically mentioned about allowing deduction u/s 80IC of the Act and there is nothing on record to show that the earlier AO had not examined the issues related to the allowability of the deduction u/s 80IC of the Act. Moreover, during re-assessment proceedings also, the appellant furnished the relevant details. Even the Addl. CIT directed the AO u/s 144A of the Act to allow the said deduction. It is to be observed that the directions issued u/s 144A of the Act are binding upon the AO and the AO has not brought any material or argument on record t....

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....se is that he has been allowed deduction under section 80IC in all the previous and subsequent years and the facts of the year under consideration are identical to all these years. The predecessor Ld. AO had allowed the impugned deduction only after verifying the facts from Form 10CCB. No material has been brought on record by the Revenue to controvert the above contentions of the assessee. 9. From the direction under section 144A of the Act issued by the Ld. Addl. CIT Range-7 New Delhi, it is observed that he perused the assessment record and recorded the finding after seeing the material in the Schedule filed that heads are bifurcated in three units i.e. unit 1, 2 and 3 which shows that the assessee has maintained/furnished three separat....