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2021 (10) TMI 516 - Income Tax
Disallowance u/s 80IC - company stated to be engaged in the business of induction Heat Seal Cap liner material and Induction Wads - products manufactured by the assessee fall under schedule 13 (at serial No. 19) which is a negative list and, therefore, profitderived from the manufacture of these products is not eligible for deduction - AO denied the claim of deduction u/s 80IC of the Act for the reason that though the claim of assessee was allowed by CIT(A) in earlier years but the order of CIT(A) has been challenged by Revenue before ITAT and the decision was awaited therefore to keep the issue alive denied the claim of assessee - HELD THAT:- As the industrial unit was set up on 26/10/2006, and the initial assessment year in which deduction under section 80 IC of the Act was claim, was assessment year 2007-08 from each year onwards such a claim was allowed to the assessee, and, therefore, tribunal returned a finding that the assessee is entitled to the deduction in section 80 IC of the Act and the classification of aluminium foil laminated on both sides with plastic films would be under Chapter Headings 7607 instead of Chapter Headings 3920.
We find that the issues involved in this matter are directly and substantially covered in assessee's own case in earlier years [2019 (2) TMI 1191 - ITAT DELHI] and while respectfully following the same we hold that the assessee is entitled to deduction under section 80 IC - Decided in favour of assessee.