TaxTMI 
TaxTMI 
TaxTMI 
2026 (3) TMI 272
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....ude Big Babol, Center Fresh, Center Fruit, Alpenliebe, Mentos, Happydent, Chlormint with Herbasol, etc. 3. As far as the year under consideration is concerned, i.e., the third year of production at the manufacturing unit at Rudrapur, Uttarakhand, the Assessee claimed a deduction of INR 90,90,45,413/- under section 80-IC of the Act in respect of the profits earned by the manufacturing unit at Rudrapur, Uttarakhand. However, since the deduction could not exceed the total income, the deduction claimed by the Assessee under section 80-IC of the Act was restricted to INR 80,77,02,717/- and accordingly, a NIL return was filed by the Assessee for AY 2010-11. That apart, the Assessee furnished audit report in form no. 10CCB of the Act for AY 2010-11. 3.1 The case of the Assessee for AY 2010-11 was picked up for scrutiny, and a final assessment order dated 05.01.2015 was passed by the AO under section 144C(13) read with section 143(3) of the Act. In the said order, the AO accepted the eligibility of the Assessee to make a claim of deduction under section 80-IC of the Act. Thereafter, the Principal Commissioner of Income Tax, Gurgaon ("PCIT"), vide order dated 21.02.2017, passed under ....
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....ion 80-IC(2)(a) of the Act, since its manufacturing facility was located in a notified area and it did not produce any item stated in the Thirteenth Schedule. 5.2 Ld. Counsel relied the observation of ld. CIT(A) that the disclosure made by the Assessee in Form 10CCB for AY 2010-11 in respect of Chlormint with Herbasol (Proprietary Ayurvedic Medicine), in Column 25 of the said Form was a mandatory requirement, and the same did not suggest that the Assessee was only making a claim under section 80-IC(2)(b) of the Act. 6. Ld. DR however submits that the order of the Tribunal in AY: 2009-10 (supra) determines nothing specifically in favour of the assessee with regard to its eligibility and as to if assessee manufactures any product which forms in the negative list specified in 13th Schedule. 6.1 Ld. DR has contended that Tribunal has not given any finding with regard to claim of deduction u/s 80-IC(2)(a)(ii) of the Act vis-à-vis claim u/s 80-IC(2)(b)(ii) of the Act and rather it has referred to findings of the TPO and has restored the matter to the TPO for re-examination about applicability of Schedule 13. It was submitted that assessee has negated the provisions of Sec....
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....on/DIC/2008-09 dated 27.08.2008. The Assessee was manufacturing sugar confectionery, ayurvedic medicine, etc., at the above-mentioned premises, as per the statutory verification report issued by the Excise Department. The Assessee was not manufacturing any item listed in the negative list, as provided for in the Thirteenth Schedule of the Act. 8. Then it is matter of fact that the claim of the Assessee under section 80- IC(2)(a)(ii) of the Act has already been accepted by the Assessing Officer ("AO) for AY 2009-10. In this regard, we refer to the extract of the report dated 29.05.2017 furnished by the AO as contained at para 4.5 at internal pages 11-13 of the order dated 31.12.2018 passed by the Commissioner of Income Tax (Appeals) in the Assessee's own case for AY 2009-10, wherein the following concession of the AO has been recorded: "From the information submitted by the AR, it can be concluded that based on the above evidences, the assessee has a manufacturing unit in the notified area of Uttarakhand to be a unit eligible under section 80- IC(2) (a) of the Act. ............. 1) Excise Returns for FY 2008-09 - The excise returns filed by the asse....
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....of section 80IC(2)(a) and 80IC(2)(b) have been reproduced above. It is seen from the provisions of the two sections that it is not optional for any person to claim deduction under section 80IC(2)(al) or under section 80IC(2)(b). There are separate conditions prescribed for claiming deduction under either of the two sections. The deduction u/s 80TC(2)(a) is eligible only for units located in the notified areas of the states of Sikkim, Himachal Pradesh, Uttarakhand and North Easter States. Whereas the deduction u/s 80IC(2)(b) is allowable in the case of units located anywhere in the states of Sikkim, Himachal Pradesh, Uttarakhand and North Eastern States, Further, the deduction u/s 80IC(2)(a) is allowable on manufacturing of any product except the articles listed in Schedule Thirteen where as the deduction u/s 80IC(2)(b) is limited only to the articles listed in Schedule Fourteen. Therefore, the deduction w/s 80IC(2)(a) is allowable on the units located in notified areas even if they are producing articles listed in Schedule Fourteen or not listed in Schedule fourteen as long as they are not producing any article listed in Schedule Thirteen of the IT Act. 4.9 The Hon'ble....
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....duction under Section 80IC(2)(a) in accordance with the provision of law. These grounds of appeal are allowed." 11. In fact, co-ordinate bench vide judgment dated 20.10.2022 passed in appeal preferred by the Revenue against the order passed by the CIT(A) for AY 2009-10 also held as follows: "ITA No. 1715/Del/2019 (Departmental Appeal) 7. In the instant case, the assessee has claimed deduction u/s 80- IC(2)(a) from the profits of the manufacturing unit in a notified area located in Rudrapur, Uttarakhand. The items manufactured are big babool, centrefresh, chlormint which as per the verification report of the Excise authority are not in the negative list as per notification No. 50/2003-CE which are the same as the list mentioned in the 13th Schedule of the Income Tax Act, 1961. 8. The Id CIT (4) allowed the claim of deduction after going through the remand report of the Assessing Officer which contains CBDT notification No. 177/2004 mentioning the area notified as industrial area for the purpose of Section 80-IC(2)(a) of the Act. The authorities below have also gone through the lease deed entered into with State Industrial Development Corporation of Utta....