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2012 (11) TMI 231 - AT - Income TaxDeduction u/s. 80IB - disallowance as activity cannot be considered to be manufacturing - Held that:- The business of assessee relates to cutting and polishing of marbles stone who procures rough marble blocks, which is first cut or chiseled using a hammer and a chisel. Thereafter the block is cut into the form of slabs. Thereafter, these slabs are placed under a polishing machine to make the surfaces smooth. Then edges of the tiles are cut using saw blades, therefore, for this purpose the assessee is entitled to deduction under section 80IB following the judgment in the case of ITO vs. Arihant Tiles and Marbles Pvt. Ltd.[2007 (5) TMI 132 - HIGH COURT, RAJASTHAN]. As in earlier year the matter was restored to the file of A.O. for the verification of calculation. In the current year also the A.O. had disallowed the deduction u/s. 80IB at initial point and had not checked the calculation of deduction - restore the matter to the file of AO with a direction to verify the working of calculation and allow the deduction.
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