Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2009 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (12) TMI 649 - HC - Income TaxWhether Tribunal was justified in law in allowing deduction under section 80-IA of the Act in disregard of the fact that the activity carried on by the assessee did not qualify as 'manufacturing activity' for the purpose of section 80-IA – Held that:- assessee after plucking or receiving the raw coffee berries makes it undergo nine processes to give it the shape of coffee beans. The net product is absolutely different and separate from the input. The change made in the article results in a new and different article which is recognized in the trade as a new and distinct commodity. The coffee beans have an independent identity distinct from raw material from which it was manufactured. A distinct change comes about in the finished product, question is thus answered in favour of the assessee and against the Revenue Whether Tribunal was justified in law in holding that the incidental business income derived by the assessee in the shape of interest income and advances from customers was eligible for deduction under section 80-IA of the Act – Held that:- Commissioner of Income-tax (Appeals) rightly held that it was not derived from any goods or services produced by the said unit and that it arose from the absence of any goods having been produced and supplied by the Daman unit. The ratio of Liberty (2009 - TMI - 34471 - SUPREME COURT) applied squarely, decision in favour of the Revenue holding that Rs.44,45,508 received as advance from the customers and forfeited by the assessee would not be eligible for deduction under section 80-IA of the Act. The appeal stands disposed of in the aforesaid manner
|