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2015 (2) TMI 1199 - AT - Income TaxExemption U/s 10BA - Held that:- As decided in assessee's own case for A.Y. 2004-05, 2005-06 and 2006-07 1% labour expenses are incurred on private labourer engaged by the assessee on job work got done by the assessee, otherwise the assessee has its own manufacturing premises where permanent employees are employed and if this expenditure is taken into consideration then it is not 1% but it is substantial expenditure. This aspect has also been examined by the ld. CIT (A) and found that the assessee has incurred substantial expenditure on its manufacturing activity. Statements of 12 persons were recorded by AO during remand proceedings and those persons have categorically stated that they sold unfinished goods to the assessee and major portion of work on those goods have been done by the assessee itself in their premises. Neither the facts narrated by the supplier were found incorrect nor there was any other evidence to hold that the assessee is only doing manufacturing process. On similar facts, the Tribunal in case of Mangalam Arts [2008 (6) TMI 248 - ITAT JAIPUR-A] has held that the assessee is entitled for deduction under section 10BA. We are of the considered view that the assessee was in manufacturing of goods and eligible for deduction U/s 10BA of the Act - Decided in favour of assessee
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