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2020 (12) TMI 674 - HC - Income TaxDisallowance of claim u/s 10B - assessee has not satisfied the requirements of said provision to claim deduction u/s 10B as the assessee was not involved in manufacturing activity and was formed by splitting up of existing company? - tribunal is correct in law in setting aside the disallowance of claim under Section 10B - HELD THAT:- CIT(Appeals) has examined the issue of manufacture / production of any article or thing and after referring to various decisions has recoded a finding that the activity of the assessee amounts to manufacture / production of articles or things. CIT (Appeals) has recorded following reasons for arriving at the conclusion that the assessee is entitled to benefit of Section 10B. The tribunal has held that in respect of first two contingencies, undoubtedly, there is a production or manufacture in the nature of a compound. However, in respect of third contingency by placing reliance on the decision of the Supreme Court in 'CIT VS. M.C.BUDHI RAJA AND CO. [1993 (9) TMI 6 - SUPREME COURT] it has held that even in respect of third contingency, it can be held that the assessee is engaged in the activity of production. Thus, the order passed by the CIT (Appeals) has been upheld. It is pertinent to mention that in the memo of appeal filed before the tribunal, the revenue has not assailed the finding recorded in favour of the assessee that there has been no splitting up of the business, therefore, the question of remitting the matter to the tribunal does not arise. In ‘HERO VINOTH (MINOR) VS. SESHAMMAL [2006 (5) TMI 478 - SUPREME COURT] while dealing with the scope of Section 260A of the Act, it was held that this court will not interfere with findings of the court, unless the courts have ignored material evidence or acted on no evidence or have drawn wrong inferences from proved facts by applying the law erroneously or the decision is based on no evidence. - Decided against the revenue and in favour of the assessee.
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