TMI Blog2020 (11) TMI 908X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) TMI 1689 - ITAT DELHI] has rightly deleted the addition made by the AO on account of disallowance u/s 80-IC. So we find no scope to interfere into the findings returned by Ld. CIT(A). - Decided against revenue. Addition on account of personal use of car, on account of tour and travelling expenses and on account of telephone expenses respectively made by the AO on ad hoc basis @ 10% - HELD THAT:- AO has proceeded to make ad hoc disallowance without assigning any reasons but on the basis of surmises the disallowance is not sustainable in the eyes of law. When undisputedly assessee has claimed the expenses on the basis of its audited financials which have not been disputed by the AO, the ad hoc addition on the basis of surmises is ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the rate of 25 percent. 3. Allowing 100% deduction u/s 80IC for the 6th assessment year whereas Hon ble Gujarat High Court in the case of M/s Anand Food and Dairy Products Vs. ITO 394 ITR 0531 on the issue of deduction u/s 80IB has adjudicated that deduction would be available to the assessee at the rate of 25% from 6th year after completion of five years. The provisions of section 80IC and 80IVB are parallel provision in nature. 4. Deleting the addition of ₹ 1,28,692/- on account of personal use of the car without giving any specific reason. 5. Deleting the addition of ₹ 85,682/-on account of tour and travelling expenses as the assessee failed to produce vouchers of expenses and substantiate its claim that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee and thereby framed the assessment at ₹ 3,23,31,850/- u/s 143(3). 3. Assessee carried the matter before Ld. CIT(A) by way of filing the appeal who has deleted the addition by allowing the same. Feeling aggrieved, the Revenue has come up before the Tribunal by way of filing present appeal. 4. We have heard the Ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. 5. Ld. DR for the Revenue challenging the impugned order passed by Ld. CIT(A) relied upon order passed by the assessment order and contended that the entire addition/disallowance have been made by the AO on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... carried out during financial year 2011-12. 8. When it is not in dispute that the assessee has carried out substantial expansion during financial year 2011-12 by installing plant and machinery worth ₹ 1,20,26,092.00 which is more than 50% of the total book value of ₹ 2,30,48,407.00 of the plant and machinery existing on 1st day of the previous year in which substantial expansion was took place, the claim of the deduction on account of substantial expansion u/s 80IC sub section 8 clause (ix) is admissible to the assessee irrespective of the conditions stipulated for North Indian States and North Eastern Indian States as discussed by AO. 9. Hon ble Supreme Court of India in case cited as Principal Commissioner of Income-tax, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -section (6). For example, if the expansion is carried out immediately, on the completion of first five years, the assessee would be entitled to 100% deduction again for the next five years. On the other hand, if substantial expansion is undertaken, say, in 8th year by an assessee such an assessee would be entitled to 100% deduction for the first five years, deduction @ 25% of the profits and gains for the next two years and @ 100% again from 8th year as this year becomes initial assessment year once again. However, this 100% deduction would be for remaining three years, i.e., 8th, 9th and 10th assessment years. 10. In the light of the aforesaid undisputed facts, we are of the considered view that when assessee has carried out substant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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