COMMISSIONER OF INCOME TAX Vs. BANSI LAL GUPTA

JUDGEMENT

(1.) This appeal is preferred by the Commissioner of Income Tax, Jammu challenging the order of Income Tax Appellate Tribunal, Amritsar Bench made in ITA No. 250(Asr)/2012 dated 19.03.2013 for the assessment year 2009-10. The facts leading to the filing of this appeal are that the assessee filed his E-Return of income on 29.09.2009 declaring income of Rs. 11,11,400/- after claiming deduction of Rs. 55,49,643/- under Section 80-IB of Income Tax Act, 1961. The assessee is doing business of publishing and printing of newspapers along with several other business ventures. He started his business of publication of newspaper as an editor in the year 2002, getting it printed from outside. In the year 2006, the assessee established a printing press and printing was carried out in the said unit on which deduction under Section 80-IB of the Income Tax Act, 1961 was claimed, which was allowed in respect of assessment years 2007-08 and 2008-09 by the respective assessing officer. For the assessment year 2009-10, the assessing officer changed his opinion stating that the act of setting up of printing press was only an expansion of the existing business, as such, he did not allow various claims of the assessee and completed the assessment on 29.12.2011. Aggrieved by the said assessment order, the assessee filed an appeal before the 1st appellate Authority, who by order dated 20.03.2012 partly allowed the appeal and granted deduction under Section 80-IB of the Act and also upheld the deduction claimed under Section 80-IB. The Revenue being aggrieved by the said order, filed appeal before the Income Tax Appellate Authority by contending that the appellate authority had not appreciated the records of the assessee and wrongly allowed the appeal as the case of setting up of new business and not of expansion of the existing business and the Commissioner of Income Tax (Appeals) treated the unit as a new unit which was splitting or re-organization of the existing unit. The said plea was opposed by the assessee by contending that the deductions in dispute has already been allowed by the Revenue for the assessment year 2007-08 and 2008-09 in the assessment made under Section 143(3) of the Act and therefore, for subsequent year also the appellate authority allowed the deductions and treated the income from advertising in the newspaper as derived from eligible business by following the rule of consistency.

(2.) While deciding the said issue, the Income Tax Appellate Tribunal noticed the finding of fact recorded by the Ist Appellate Authority in paragraph No. 4.2 and dismissed the appeal of the Revenue, against which this appeal is filed, which was admitted on the following substantial questions of law:-

(3.) Both the authorities, namely Ist appellate authority and the Income Tax Appellate Tribunal, on appreciation of facts recorded finding to the effect that the unit was a new one and not expansion of the existing business by following the rule of consistency for the assessment years 2007-08 and 2008-09 because for these years similar deductions have been granted by the assessing officer to the assessee.