DCIT Vs Time Technoplast Ltd (ITAT Mumbai)
Section 80IC Deduction Depreciation Allowed on Consistency; Bogus Purchase Addition Restricted to 12% – ITAT Mumbai
The ITAT Mumbai dismissed the Revenue’s appeals for AYs 2016-17 & 2018-19 in the case of Time Technoplast Ltd., holding that all issues stood squarely covered in assessee’s own case by earlier ITAT orders.
On deduction u/s 80IC, the Tribunal noted that identical disallowances made on the allegation of inter-unit transfer of pre-used plant & machinery (exceeding 20%) had already been deleted consistently from AY 2008-09 onwards & such deletion had attained finality. Following judicial discipline & consistency, the disallowance of ₹3.15 crore was rightly deleted by CIT(A).
On depreciation, additions were made by the AO based on survey findings alleging mismatch between physical machinery & Form 10CCB. The Tribunal held that similar depreciation disallowances were deleted in earlier years & upheld by ITAT. Since books were neither rejected u/s 145 nor any corroborative evidence was brought on record, depreciation disallowance could not survive.
On alleged bogus expenses u/s 69C, relating to accommodation entries from a labour contractor, the Tribunal upheld the restriction of addition to 12% of such expenses, in line with earlier ITAT orders in assessee’s own case.
For AY 2018-19, the Tribunal further held that delay in filing return does not defeat 80IC claim where Form 10CCB was filed within due date & deduction was otherwise duly quantified. Filing of audit report was treated as procedural & directory, relying on settled Supreme Court jurisprudence.
Accordingly, both Revenue appeals were dismissed in entirety, reaffirming that issues settled in earlier years cannot be re-agitated on identical facts.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
