TMI Blog2012 (12) TMI 363X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacturing activity it is not sine qua non that he should undertake all manufacturing activities by himself. It would be enough if he engages himself in a part of manufacturing activity and gets rest of it done through the agency of others. Therefore, the assessee is entitled to deduction u/s 80IB in respect of profits derived from the job work production. Issue decides in favour of assessee - ITA No.1514 /Mds/2011 - - - Dated:- 25-7-2012 - Dr. O.K. NARAYANAN AND SHRI VIKAS AWASTHY, JJ. Appellant by : Mr. K.E.B. Rangarajan, Jr.Standing Counsel Respondent by : Mr. R.Vijayaraghavan, Advocate ORDER PER VIKAS AWASTHY, JUDICIAL MEMBER: The appeal has been preferred by the Revenue impugning the order of the CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 80IB need not be reduced from the profits of the business for the purpose of deduction under section 80HHC. (ii) The CIT(A) erred in holding that profit derived from job work charges are eligible for deduction under section 80IB. 4. Shri K.E.B.Rengarajan, appearing on behalf of the Revenue submitted that the CIT(A) has erred in allowing the appeal of the assessee on the aforementioned two grounds. The learned D.R. contended that with effect from 1.4.1999 deduction under section 80HHC has to be computed only on the profits available after allowing deduction under section 80IB. As regards, eligibility of deduction under section 80IB on profits derived from job work charges, the D.R. submitted that profits from job work charges were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The view expressed by the Hon ble jurisdictional High Court has been repeatedly followed by different High Courts in number of cases and thus it is a well settled law that two sections are independent and therefore the deduction can be claimed under both the sections on the gross total income. We, therefore, uphold the order of the CIT(A) on this issue and reject the first ground raised by the Revenue. 8. The second issue is with regard to profits derived from job work charges - whether eligible for deduction under section 80IB? The co-ordinate Bench of the Tribunal in assessee s own case titled Deputy Commission of Income Tax Vs. M/s. Colour Plus Fashions Pvt. Ltd. relevant to the assessment year 2000-01 decided on 25.01.2007 has hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring activity and gets rest of it done through the agency of others. We have gone through the reasoning adduced in the impugned order. In our opinion, CIT(A) took a correct view in the matter and his order calls for no interference on this count. Accordingly, we uphold the same. 9. We are of the considered opinion that the present controversy is similar to the one which has already been decided by the Tribunal in the assessee s own case for the assessment year 2000-01. Respectfully following the decision of the co-ordinate Bench of the Tribunal, we dismiss this ground of the Revenue and hold that the assessee is entitled to deduction under section 80IB in respect of profits derived from the job work production. No interference in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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