##PAGE1##

P ag e | 1

ITA No.623/Del/2025

Perfetti Van Melle India Pvt. Limited (AY: 2010)

IN THE INCOME TAX APPELLATE TRIBUNAL

“B” BENCH, DELHI

BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER &

SHRI MANISH AGARWAL, ACCOUNTANT MEMBER

ITA No.623/Del/2025

(Assessment Year:2010-11)

ACIT, Circle-3 Vs. Perfetti Van Melle India

2^nd Floor, HSHDC Pvt. Limited,

Building, Shankar Chowk, 47, Milestone Delhi Jaipur

Gurugram, Highway Manesar

Haryana – 122001 Haryana - 122051

(cid:1)थायीलेखासं./जीआइआरसं./PAN/GIR No: AAACP2626A

Appellant .. Respondent

Appellant by : Sh. Anmol Anand, Adv.

Ms. Sheetal Kandpal, Adv

Respondent by : Ms. Pooja Swaroop, CIT (DR)

Date of Hearing 07.01.2026

Date of Pronouncement 05.03.2026

O R D E R

PER ANUBHAV SHARMA, JM:

This appeal is preferred by the assessee against the order dated

07.11.2024 of the Ld. National Faceless Appeal Centre (NFAC) (hereinafter

referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN &

P ag e | 2

ITA No.623/Del/2025

Perfetti Van Melle India Pvt. Limited (AY: 2010)

Order No : ITBA/NFAC/S/250/2024-25/1070183338(1) arising out of the

order dated 23.11.2017 u/s143(3) r.w.s u/s 263 of the Income Tax Act, 1961

(hereinafter referred to as ‘the Act’) passed by the DCIT, Circle-3, Gurgaon

for AY: 2010-11.

2. Heard and perused the records. The Assessee is engaged in the business

of manufacturing Candies, Gums, Jelly and proprietary Ayurvedic products

from its factories located at Manesar (Haryana), Rudrapur (Uttarakhand) and

Chennai (Tamil Nadu). Some of the products manufactured by the Assessee

include Big Babol, Center Fresh, Center Fruit, Alpenliebe, Mentos,

Happydent, Chlormint with Herbasol, etc.

3. As far as the year under consideration is concerned, i.e., the third year

of production at the manufacturing unit at Rudrapur, Uttarakhand, the

Assessee claimed a deduction of INR 90,90,45,413/- under section 80-IC of

the Act in respect of the profits earned by the manufacturing unit at

Rudrapur, Uttarakhand. However, since the deduction could not exceed the

total income, the deduction claimed by the Assessee under section 80-IC of

the Act was restricted to INR 80,77,02,717/- and accordingly, a NIL return

P ag e | 3

ITA No.623/Del/2025

Perfetti Van Melle India Pvt. Limited (AY: 2010)

was filed by the Assessee for AY 2010-11. That apart, the Assessee furnished

audit report in form no. 10CCB of the Act for AY 2010-11.

3.1 The case of the Assessee for AY 2010-11 was picked up for scrutiny,

and a final assessment order dated 05.01.2015 was passed by the AO under

section 144C(13) read with section 143(3) of the Act. In the said order, the

AO accepted the eligibility of the Assessee to make a claim of deduction

under section 80-IC of the Act. Thereafter, the Principal Commissioner of

Income Tax, Gurgaon ("PCIT"), vide order dated 21.02.2017, passed under

section 263 of the Act, set aside the order dated 05.01.2015 to the extent of

the claim under section 80-IC of the Act and directed the AO to pass a fresh

assessment order in the case of Assessee for AY 2010-11.

3.2 Pursuant thereto, the AO vide assessment order dated 23.11.2017

passed for AY 2010-11 disallowed the claim of INR 80,77,02,717/- under

section 80-IC of the Act on the basis that the Assessee was not entitled to

claim deduction on the articles such as "chewing gum", "candy" and "bubble

gum" as the said products were not listed in the Fourteenth Schedule.

4. Ld. Counsel has submitted that this finding of the AO is in complete

ignorance of the fact that the Assessee had claimed deduction under section

P ag e | 4

ITA No.623/Del/2025

Perfetti Van Melle India Pvt. Limited (AY: 2010)

80-IC(2)(a)(ii) of the Act, which allows deduction in respect of all products

which do not fall in the Thirteenth Schedule. Since none of the products that

Assessee manufactures from its factory at Rudrapur fall within the Thirteenth

Schedule, the AO ought to have allowed Assessee's claim.

4.1 Furthermore, the observation of the AO in the assessment order dated

23.11.2017 passed for AY 2010-11 is c