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TMI Blog2020 (4) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... ard of the explanations rendered which is arbitrary and unjustified. 2. That the assessee had met all the necessary conditions required to claim the deduction u/s 80IB and the lower authorities have on an erroneous appreciation of facts held that the manufacturing activities commenced only after 07.01.2013 and not on 30.03.2012 which is contrary to the facts on record and as such the order passed is arbitrary and unjustified. 3. That the Ld. Commissioner of Income Tax(Appeals) has further erred in law as well as on facts in upholding the addition of Rs. 48,91,000/- treating the same to be unexplained investment in purchase of land under Section 68 in utter disregard of the factual position duly explained during the course of assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thua had granted registration bearing No.07/0/05/1200434 on 07.01.2013. As per section 80IB(4) of the I.T.Act, 1961 in the case of industrial undertaking in the state of Jammu and Kashmir one of the conditions is that the unit begins to manufacture or produce articles and things during the period beginning on the first day of April, 1993 and ending on 31st March, 2012. In this regard, the assessee was asked to substantiate that the production of the unit was stated on 30.03.2012, whereas the certificate of registration has been granted on 07.01.2013 by the District Industry Centre, Kathua, scanned copy of which has been incorporated at page 4 of the assessment order. The assessee tried to justify that the production was commenced from 30.03 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endors have received the entire sale consideration from the vendee and nothing is outstanding against him. In this regard, the assessee was asked to clarify in response to which the assessee replied, which has also been incorporated at page 15 of the assessment order. From the submissions made by the assessee and documents produced, the AO was not satisfied and he made entire sale consideration of Rs. 48,91,000/- as unexplained investment. 4. Feeling aggrieved from the assessment order, the assessee appealed before the CIT(A), wherein the assessee filed detailed written submissions. The CIT(A) after considering all the submissions and documents produced by the assessee, confirmed the action of AO. 5. Against the order of the CIT(A), the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the ITO, Ward-1, Pathankot. At the end of oral submissions, ld. AR requested further that the matter may kindly be sent to AO for further verification. 7. On the other hand, ld. DR relied on the orders of authorities below and submitted in respect of ground Nos.1 & 2 that the authorities below have analyzed in detail to the issue involved in both the grounds. Therefore, the order of both the authorities below should be upheld. In addition to this, ld. DR submitted that the AO has observed that the registration has been granted on 07.01.2013 after inception by the General Manager, DIC, Kathua. Further in respect of unexplained investment, he submitted that the assessee could not controvert the findings recorded by both the authoriti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 1,11,000/- and the AO could have examined the payment of wages of Rs. 1,11,000/- showing in the trading account for the financial year ending as on 31.03.2012. The labour register was produced before the AO, which has not been denied. Even the labour register for the subsequent year has also been placed before the AO. If the AO has doubted the commencement of production, he could have examined the labourers for being satisfied himself, however, he Just strengthened his analysis of the electricity consumption and the date of certificate issued by the General Manager, DIC, Kathua. In the peculiar facts and circumstances of the case, the case laws relied on by the authorities below are not applicable in the present case. After considering th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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