Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (9) TMI 463 - ITAT DELHIDeduction u/s 80IB(11A) - proof of manufacturing activity - as per assessee has outsourced its entire manufacturing therefore not entitled for benefit of deduction - assessee entered into an agreement with ‘Mother Dairy' for processing, preservation and packaging of milk, under which ‘Mother Dairy’ supplied pasteurized/raw chilled milk and commodities for processing and packaging of liquid milk in poly packs of different categories of milk and as the assessee company was not having its own facility, it entered into back-to-back agreement with one of its related party i.e. ‘Umang Dairy Ltd.’ (Umang) which was under BIFR process - HELD THAT:- Depreciation on such plant and machinery, however, CIT(A) deleted such disallowance and the Revenue has not challenged said finding of the CIT(A). This means, the Revenue has accepted the plant and machinery on which depreciation has been claimed, was put to use for manufacturing process by the assessee. Once the claim of the depreciation on machinery engaged for manufacturing has been accepted by the revenue, contesting that no manufacturing has been carried out by the assessee is self-contradictory and not justified - assessee that assessee was engaged in colourable device of evasion of taxes has not been found to be correct. The allegation of the AO that there were large amount of carryforward losses in the case of ‘Umang’ and therefore deduction has been claimed in the case of assessee. This claim of the Assessing Officer has been not found to be correct as Ld. CIT(A) has pointed out that there was profit in the case of the ‘Umang’ during the year under consideration. AO in the scrutiny assessment assessment year 2018-19 has accepted the claim of the assessee for deduction under section 80IB of the Act. In our opinion, when the same claim has been accepted by the Assessing Officer in assessment year 2008-19, the Assessing Officer is not justified in contesting the same issue for earlier year - Decided against revenue.
|