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2021 (9) TMI 20 - AT - Income TaxAssessments completed us 153C - Deduction u/s 80IC - proof of manufacturing activities provided or not? - whether certain incriminating documents were seized during the course of search operation as mentioned in the so-called satisfaction note? - HELD THAT:- On the basis of certain documents relating to the two months of the Financial Year 2008-09 have made consequential addition in the AY 2005-06, 2006-07, 2007-08 & 2008-09 and extrapolating the same other AY carries no logic without any material found during the course of search/survey and there is no basis for such extrapolating and, therefore, the conclusion for the Assessment Year 2005-06 to 2008-09 totally misplaced. No evidence have been brought on record to show the assessee has got work done for the sister concern in excess of what is recorded in the books of accounts and even the charges for the work done by the sister concern, is no way lower than the market rate and, therefore, the claim of deduction u/s 80IC for all the years i.e.; for Assessment Year 2005-06, 2006-07, 2007-08, 2008-09, 2009-10 and 2010-11 as claimed by the assessee has rightly been allowed by the different CIT(A)s and the documents which have been found during the course of search have successfully been rebutted before us and before the authorities below. Even the department have not rejected the books of accounts of the assessee or of any sister concern and the fact that the Assessing Officer have no basis to disallow the claim u/s 80IC is borne out from the fact that contradictory stand have been made by the different Assessing Officer for part disallowance of deduction u/s 80IC before the search and even after the search, different formulas have been adopted for making ad-hoc disallowance of deduction us 80IC on surmises and conjectures and which has rightly been deleted by the CIT(A) For the Assessment Year 2012-13, the deduction of 30% as eligible to the assessee under section 80IC had been allowed by the Assessing Officer, which was subject matter of the action u/s 263 by the PCIT and the matter was carried to the ITAT [2016 (9) TMI 1604 - ITAT AMRITSAR] which cancelled the order of the PCIT as passed us 263 and no further appeal was filed by the department - As issue have attained finality and further for Assessment Year 2013-14 & 2014- 15, the Assessing Officer had allowed the deduction as claimed by the assessee @30% as eligible deduction for that year in the order passed us 143(3) and since the facts and circumstances, for these years are the same as in the earlier years and, therefore, when on an issue, a particular claim has been settled one way or the other, then the consistency has to be maintained as per the binding judgment of the jurisdictional High Court in the case of Leader Valves Ltd.[2007 (1) TMI 70 - HIGH COURT, PUNJAB AND HARYANA] and Berger Paint [2004 (2) TMI 4 - SUPREME COURT] No merit in the argument of the department, and that the claim of the assessee for deduction u/s 80IC is hereby held to be legally justified and therefore, all the appeals of the department are dismissed.
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