The Delhi bench of Income Tax Appellate Tribunal ( ITAT ) recently held that assessee are not eligible for deduction under section 80IC of Income Tax Act 1961 ,If the plant is not situated in a notified area of Government.
Assessee Parvatiya Plywood (P) Ltd.,return their income through e-mode and declare income as Nil. After that assessing officer recorded assessee has claimed deduction under section 80IC of the Income Tax Act 1961, amounting to Rs.34,49,325/-.After the explanation given by the assessee the assessing officer found that the plant of the assessee company was not installed in the approved notified area which is mandatory for claiming deduction under section 80IC of the Income Tax Act 1961 hence, the deduction was denied and same was added back into the income of the assessee.Against this order assesee filed an appeal before ITAT.
Section 80IC of Income Tax Act 1961 provides deduction to certain undertakings which was established in certain states
On filing the appeal assessee raised that order passed by Assessing officer which is erroneous and bad in law and the Commissioner of Income Tax Appeal is not justified and has erred in law in upholding the denial of deduction of Rs.34,49,325/- under section 80IC of the Income Tax Act 1961.
Om Prakash, counsel for the revenue submits that assessee was not entitled for the deduction as the plant is not situated in the notified area. Therefore, there was no infirmity in the orders passed by the authorities below.
After considering the contentions of the both parties the single bench of ITAT of Kul Bharat (Judicial Member) dismissed the appeal filed by the assessee and observed that the assessee plant is not situated in the notified area hence there is no infirmity in the order passed by authorities below.
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