Forum
Read and express views
× Latest Case Laws on Income Tax by various Income Tax Appellate Tribunals in India

These are the latest case laws decided by various Income Tax Appellate Tribunals (ITAT) of India on Income Tax which have been published recently. The case laws are open for discussion and we invite expert comments from our members on its applicability and effect on relevant issues.

01-11-2019, Cooper Bussmann India, Section 80IB, 801C(8)(ix), Tribunal Chennai

  • amit
  • amit's Avatar Topic Author
  • Offline
  • Administrator
  • Administrator
More
4 days 8 hours ago #11348 by amit
Section - 80IB, 801C(8)(ix), 40(a)(i), 195
Order Date - 01-11-2019
Favouring - Partly allowed for statistical purposes
Court - Tribunal Chennai
Appellant - Cooper Bussmann India Pvt. Ltd.
Respondent - ACIT
Justice - DUVVURU RL REDDY JM & S. JAYARAMAN AM
Citation - 1119Taxpundit83
Appeal No. - I.T.A. Nos.1559 to 1563, 2592 -2594/CHNY/201 4
Asstt. Year - 2001-02 to 2008- 09

Order

PER : DUVVURU RL REDDY

The assessee filed these appeals against the orders of the Commissioner of Income Tax (Appeals)-VI, Chennai in ITA Nos.66,95, 96, 223 & 444/13-14/A-VI dated 28.02.2014 for the assessment years 2001-02, 2002-03, 2006-07 to 2008-09, ITA No.743, 742 & 741/13-14/A-VI dated 30.07.2014 for the for the assessment years 2003-04 to 2005-06 and the orders of the Commissioner of Income Tax (Appeals), Puducherry in ITA No.484/CIT(A)-PDY/2013-14 dated 18.03.2016, ITA No.16/CIT(A)- PDY/2014-15 dated 18.03.2016 and ITA No.001/CIT(A)-PDY/2015- 16 dated 11.11.2016 for the assessment years 2009-10, 2010-11 & 2011-12 respectively.

2. The main issue involved in these appeals are whether the assessee has set up a new unit or undertaking capable of producing entirely different products or articles from the existing unit and also as to whether the assessee is eligible for claim of deduction u/s 80lB in respect of profits declared in the returns of income filed by it. The issue started from the initial A.Y. i.e. 2001-02. Against the assessment order dated 29.03.2004, the assessee filed an appeal before the CIT(A) and the ld CIT(A) vide order in ITA No.23/2004-05, dismissed the appeal . On further appeal by the assessee, the Hon'ble ITAT vide its order in ITA No.2910/Mds/2005 dated 12.10.2007 has remitted back to the AO to consider the issue in de-novo. Subsequently, the AO denied the claim of deduction u/s 80IB noticing certain shortcomings in the quantum of the machinery purchased by the assesse and also holding that the assessee has not satisfied two major conditions as mentioned by the Supreme Court of India in the case of M/s Textile Machinery Corporation vs CIT 107 ITR 195 as under:

1. The manufacture of production or article or things by the so called new industrial undertaking with reference to the investment of substantial capital made in the so called new industrial undertaking.

2. The assessee company was not able to establish that the so called new industrial undertaking is a separate and distinct and identity when compared to the old industrial undertaking. "

2.1 Similar claims made by the assessee u/s 80IB were also disallowed by the AO for the A.Ys. 2002-03 to 2005-06, 2006-07, 2007-08, 2008-09, 2009 - 2010 & 2010-2011.

2.3 This Tribunal in ITA 1559/Mds/2014, dated 01.09.2016, directed the AO, inter-alia, to examine all the bills and vouchers and functions of each and every machinery and thereafter file a report before this Tribunal on or before 01.11.2016 after serving a copy of the same to the assessee. It made clear, in the remand proceeding, the assessing officer may also inspect the so called plant and machinery in person, in case, he doubts the existence of the plant and machinery, said to be purchased by the assessee. It is open to the assessee to file objection to the report filed by the assessing officer before this Tribunal. The AO filed his report on which the assessee has also filed its rejoinder. However, they have not addressed the specific issues as desired by the Hon’ble ITAT, therefore, they are not dealt here. Therefore, the appeal is heard on merit.

3. On the issue of disallowance U/s.80IB, the ld.AR submitted against the various findings recorded by the lower authorities issuewise as under:

1. With regard to the finding that investment was not substantial, the ld.AR submitted that the issue of substantial investment is relevant to be examined when the undertaking manufactures same products as the old undertaking, so as to establish that the undertaking is a new and independent undertaking and not merely extension of the old undertaking formed by reconstruction.

In case, the new undertaking is engaged in manufacturing completely new range of products which the old undertaking was not manufacturing, then issue of substantial investment would not be

Click to view and download Full Free Judgement of Cooper Bussmann India Pvt. Ltd. vs. ACIT

Unable to display Google Map.




Please Log in or Create an account to join the conversation.

Time to create page: 0.143 seconds

If You Appreciate What We Do Here On TaxPundit, You Should Consider:

We are thankful for your never ending support.

Latest Analysis - High Courts

Akrati Promoters And Developers vs. DCIT

Akrati Promoters And Developers vs. DCIT

Akrati Promoters And Developers vs. DCIT Read More
CIT vs. ANOOP JAIN

CIT vs. ANOOP JAIN

CIT vs. ANOOP JAIN Read More
PCIT vs. LALIT BAGAI

PCIT vs. LALIT BAGAI

PCIT vs. LALIT BAGAI  Read More
ROHIT KUMAR GUPTA vs. PCIT

ROHIT KUMAR GUPTA vs. PCIT

ROHIT KUMAR GUPTA vs. PCIT Read More
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42

Forum Features

Latest Case Laws
Latest Case Laws are instantly updated in the Forum into their respective section
Latest from CBDT
Latest Circulars, Notifications, Orders etc. from CBDT is updated in the Forum
Ask Experts
You can ask questions to the community
Support
Support queries are either replied via mail or in the Forum so that others can be benefited
Press Releases
Latest Press Notes and Press Releases are updated in the Forum
Connect with Members
You can connect with our community members by replying to their queries

Recommended Articles

 

SITE INFORMATION

All content herein is the copyright of Taxpundit. No images, text, or any other content may be, reproduced or redistributed without the express written consent of Taxpundit.

All Rights Reserved. All Content Copyright.

Newsletter

Subscribe to our newsletter and stay updated on the latest developments and special offers!

Company Master Data Since 1900. More than 1.75 Million Records. Register/Login to get FREE access. Read more
Toggle Bar