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2021 (3) TMI 809 - AT - Income TaxDeduction u/s 80IB - assessee has claimed deduction claiming to have two units - AO found that there was only one unit - HELD THAT:- The assessing officer found that there was only one unit. The same was already enjoying deduction under section 80IB(4). This was the last year of the claim of deduction under section 80IB for that unit. In the current year assessee claimed that it has established another unit named unit-II, and claimed deduction under section 80IB(4) for both the units. AO found that assessee had only done substantial increase in the capacity of its existing unit and was trying to pass it off as establishment of a second unit. In this regard assessing officer also obtained report from the additional director investigation. The said report duly provided that there was only one unit which was also corroborated by the examination of ADI from the assessee’s work’s manager. Simply increase in capacity and production figure cannot fructify the assessee’s claim of deduction under section 80IB for the assessment for establishment of a new unit when all other factors show that there is no establishment of a separate undertaking. The decisions referred by learned CIT(A) are not at all applicable on the facts of the present case. Here it is a clear finding that this is the last year of eligibility of claim u/s. 80IB(4) deduction of the eligible unit and the assessee has tried to pass off an increase in production capacity as establishment of new unit. The Assessing Officer has duly found that there is no establishment of a new unit. Only an increase in production is being passed off as establishment of new unit. Not a single ingredient for establishment of new unit has been noted by the Assessing Officer or ADIT on his physical visit to the unit. In this regard we note that a Constitution bench of the honourable Supreme Court in the case of Commissioner of Customs (Import) Vs M/s. Dilip Kumar & Company [2018 (7) TMI 1826 - SUPREME COURT] has expounded that in case of exemption provisions if two views are possible the one in favour of the Revenue has to be adopted. Moreover we find that learned CIT(A) has not adjudicated the alternative plea of the assessee. Assessee is aggrieved by this. Assessee has also filed cross objection in this regard. In our considered opinion interest of justice will be served if the issue is remitted to the file of learned CIT(A). Learned CIT(A) is directed to consider the issue afresh and decide on all the aspects of the grounds raised by the assessee including alternative plea. Appeal by the revenue stands allowed for statistical purposes
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