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2022 (12) TMI 1303 - ITAT DEHRADUNRevision u/s 263 - notice to a non-existent entity - deduction u/s.80IC was wrongly allowed as it appears that the assessee firm was not carrying out manufacturing activities at the factory premises - HELD THAT:- Since, the notices issued by the revenue authorities were after the date of closure of the business they have been rightly returned answered. Since, the closure of the business as no operations could be carried and no employees were available at the premises of the factory, the notices have been returned. Hence, it cannot be concluded that during the financial year period from 01.04.2011 to 31.12.2012 was not in existence. The derivation of the ld. PCIT cannot be held to be correct. Had the manufacturing activities were carried out as on date the notices could have been served.From the record, it is clear that the manufacturing activities were not being carried out from 31.12.2012 and the cancellation of registration on 04.03.2013 was also on record. Hence, the notices could not be served and it is a fact that the manufacturing activity was not carried out as on the date of issue of notice. It certainly does not give raise to a conclusion that there was no manufacturing activity during the year 01.04.2011 to 31.12.2012. It is not worthy to conclude that the permanent closure of the business was done w.e.f. 31.03.2014. It is a fact on record that the permanent closure of the business was done w.e.f. 31.03.2014 and polynomial interpolation cannot be resorted to conclude that the assessee was not into manufacturing during the period 01.04.2011 to 31.12.2012. The authorization given by the assessee was not affixed by requisite court fee. Hence invalid. The validity or invalidity of the letter of authority cannot be a matter of proceedings u/s. 263 especially when the assessee reaffirmed the details filed by the AR.The assessee sold products to only two concerns at Bangalore namely, M/s. Creative International Pvt. Ltd. and M/s. Texport Overseas Pvt. Ltd. The bills have been duly examined. The transport bills have been duly filed before the AO which consists of South India Freight Carriers and Uttarakhand Logistics. The transport charges have been paid by the recipient. The central Sales Tax declarations/'C' Form have been duly filed. Hence, there is no reason to suspect the sales without bringing any material to prove that the bills are phoney or the entities which received the goods are bogus. Hence, the conclusion of the ld. PCIT cannot be supported. The sale invoices to those two concerns do not give any information as to how the goods have been sent to Bangalore from Roorkee. The sale invoices clearly shows that the goods have been sent by freight carrier companies named above and the recipient "to pay" the freight charges. The raw materials were also purchased from Bangalore which do not give any credence to the factum of purchase. Factually incorrect. No goods have been purchased from Bangalore. The Poly Yarn was purchased from Delhi and Erode The expenses incurred on account of electricity & wages do not suggest any manufacturing activity carried out at the premises. The amounts have been duly examined by the AO as per the observation at page no. 2 of the Assessment Order. The electricity bills and invoices details have been duly examined and accepted by the AO with reference to books of accounts and bills. In the absence of any remark, no adverse conclusion could be drawn with regard to the provisions of Section 263 - Appeal of the assessee is allowed.
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