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Deduction under section 80 IB was to be allowed unit wise and each unit was to be treated as an independent unit — Deputy Commissioner of Income Tax vs. Prince Pipes and Fittings P. Ltd.

INCOME TAX APPELLATE TRIBUNAL- MUMBAI

 

I. T. A. No. 378 /Mum/ 2014(assessment year 2010-11).

 

DEPUTY COMMISSIONER OF INCOME-TAX ...................................Appellant.
V
PRINCE PIPES AND FITTINGS P. LTD. ............................................Respondent

 

B. R. BASKARAN (Accountant Member) and AMIT SHUKLA (Judicial Member)

 
Date :June 23, 2015
 
Appearances

Premanand J. for the appellant.
Ms. Mrugakshi K Joshi for the respondent.


Section 80IB of the Income Tax Act,1961 — Deduction — Deduction under section 80 IB was to be allowed unit wise and each unit was to be treated as an independent unit — Deputy Commissioner of Income Tax vs. Prince Pipes and Fittings P. Ltd.


ORDER


The order of the Bench was delivered by

1. B. R. Baskaran (Accountant Member).-The Revenue has filed this appeal challenging the order dated November 28, 2013 passed by the learned Commissioner of Income-tax (Appeals)-13, Mumbai and it relates to the assessment year 2010-11.

2. The only issue urged in this appeal is regarding the relief granted by the learned Commissioner of Income-tax (Appeals) reversing the decision of the Assessing Officer rejecting the deduction claimed by the assessee under section 80-IB of the Income-tax Act, 1961 (the Act), amounting to Rs. 2.73 crores.

3. Learned counsel appearing for the assessee submitted that the assessee is engaged in the business of manufacture of plastic pipes and fittings and claimed deduction under section 80-IB of the Act at the rate of 100 per cent. in respect of Unit-5 and at the rate of 30 per cent. in respect of Unit- 4. The assessee claimed that it has set up different units numbered as Nos. 1 to 5 and they are independent of each other. Accordingly the assessee claimed that deduction under section 80-IB of the Act should be allowed independently to each of the unit. However, the Assessing Officer rejected the said claim of the assessee.

4. The learned authorised representative further submitted that the learned Commissioner of Income-tax (Appeals) allowed the claim of the assessee by following the decision rendered by the co-ordinate Bench of the Tribunal in the assessee's own case in I. T. A. No. 3082/Mum/2010 (assessment year 2006-07) dated February 9, 2012, wherein the Tribunal decided this issue in favour of the assessee. Learned counsel further submitted that the decision rendered by the Tribunal in the assessment year-2006-07 was also followed by another Bench of the Tribunal in the assessment year 2007-08 passed in I. T. A. No. 5488/Mum/2010, dated October 5, 2011. Accordingly, learned counsel submitted that the appeal filed by the Revenue deserves to be dismissed.

5. On the contrary, the learned Departmental represenative placed reliance on the order of the Assessing Officer.

6. We heard the rival contentions and perused the record. Admittedly, the learned Commissioner of Income-tax (Appeals) has followed the order passed by the Tribunal in the assessee's own case for the assessment year- 2006-07. A perusal of the order of the Tribunal would show that the Tribunal is consistently taking the view that the deduction under section 80-IB should be allowed unit-wise and each unit is an independent unit. We notice that the learned Commissioner of Income-tax (Appeals) has followed the order of the Tribunal on this issue. We do not find any infirmity in his order.

7. In the result, the appeal of the Revenue is dismissed.

The order pronounced in the open court on the 23rd June, 2015.

 

[2015] 42 ITR [Trib] 9 (MUM)

 
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