ITAT Mumbai Dismisses Revenue Appeals in Time Technoplast Case

The “E” Bench of the Income Tax Appellate Tribunal, Mumbai, has dismissed the Revenue’s appeals for Assessment Years 2016–17 and 2018–19 in the case of Time Technoplast Ltd., vide order dated 2 February 2026. The appeals challenged relief granted by the CIT(A) on issues relating to deduction under Section 80IC, depreciation on plant and machinery, and alleged bogus expenses.

Section 80IC Deduction and Depreciation Issues

The Tribunal upheld the CIT(A)’s decision allowing deduction under Section 80IC in respect of the Pantnagar units, rejecting the Revenue’s contention that the assessee violated statutory conditions by using pre-used plant and machinery beyond the permissible limit. It noted that identical disallowances made in earlier years had already been deleted by the ITAT in the assessee’s own case and such findings had attained finality. Similarly, disallowance of depreciation based on discrepancies found during survey was rejected, with the Bench reiterating that asset valuation cannot be doubted without rejecting the books of accounts.

Bogus Expenses and Late Filing of Return

On alleged bogus expenses under Section 69C, the Tribunal sustained the restriction of disallowance to 12 percent of the expenditure, consistent with prior ITAT orders. For AY 2018–19, it also upheld the allowance of Section 80IC deduction despite delay in filing the return, relying on settled law that filing of audit report in Form 10CCB is directory and procedural lapses should not defeat substantive claims. Consequently, both Revenue appeals were dismissed in entirety.