Parvatiya Plywood (P) Ltd. Vs ITO (ITAT Delhi)
Assessee filed its return of income through e-mode on 30.09.2012 declaring NIL income. It is recorded by the Assessing Officer that the assessee has claimed deduction u/s 80IC of the Act, amounting to Rs.34,49,325/-. In respect of statutory notices, Ld.AR of the assessee attended the assessment proceedings. The AO had sought explanation regarding the claim of the assessee for deduction u/s 80IC of the Act. However, the explanation of the assessee was not found acceptable and the AO recorded the finding that the plant of the assessee company was not installed in the approved notified area which is mandatory for claiming deduction u/s 80IC of the Act hence, the deduction was denied and same was added back into the income of the assessee.
I find that there is no dispute with regard to the fact that for claiming deduction u/s 80IC of the Act, the manufacturing plant should be installed in the notified area. However, the assessee stated that due to mistake made by the State Government, Khasra Number of the land on which manufacturing unit of the assessee company is situated, was left for inclusion. In view of the fact that the assessee’s plant is undisputedly not situated in the notified area hence, there is no infirmity in the order passed by authorities below.
In the result, the appeal of the assessee is dismissed.
