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2017 (4) TMI 1316 - AT - Income TaxEligibility to deduction u/s 80-IB - whether process of preparation of poultry feeds amount to production of an article within the meaning of section 80IB? - Held that:- This issue has duly been decided by this Bench in assessee's sister concern Amrit Feeds Ltd. as categorically held the assessee is engaged in manufacturing of poultry feeds and that the assessee is engaged in the manufacture or production of an article. The assessee's eligible undertaking itself was independently carrying out the complete activity i.e. from mixing, grinding till the pelletisation. The raw materials once consumed could not be reconverted into the same position. Its utility gets changed. The prime raw materials such as, maize, soya oil, rice bran, etc. can no more be regarded to be the rice bran, soya oil, maize. - Decided in favour of assessee Whether interest income earned by the assessee on FDRs should be considered as income derived from eligible business for the purpose of allowing deduction u/s 80IB(5) - Held that:- In the light of the admitted factual position that the income in question had direct nexus with the business of the assessee. The same was rightly held by CIT(A) to be eligible for the purpose of claiming deduction u/s 80IB(5) of the Act. We do not find any ground to interfere with the order of CIT(A). Consequently the grounds of appeal are dismissed.
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