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2013 (4) TMI 231 - AT - Income TaxDeduction u/s. 80IB - CIT(A) allowed the claim - Held that:- On perusal of the assessment order passed by the A.O. it is found that he has held the assessee to be engaged in the assembling and not manufacturing. CIT (A) while granting the deduction has held that the goods manufactured by the assessee are subject to payment of Excise Duty. He has further given a finding that as per the Registration Certificate for the Sales Tax and Central Sales Tax Act the business of the is shown to be "manufacturing activity", the assessee has been granted provisional SSI Registration prior to 31st March, 2004 the assessee has been granted electrical connection vide letter dated 30-12-2003 with load of 50 HP. He has further given a finding that though most of the job has been got done by the assessee from outside parties final process has been undertaken at the assessee's factory premises and which is evident from the Excise Duty payment made by the assessee. He has also given a finding after considering the bills of raw material used and the sales bills that the product sold by the assessee is distinct and different from the original raw material. After conversion of raw material assembling of parts and after testing the machineries the same are packed in various parts and dispatched to the customers where the erection is done. The aforesaid facts could not be controverted by Revenue by bringing any contrary material on record. What is find from the process indicated hereinabove is that there are various stages through which the blocks have to go through before they become polished slabs addition tiles. In the circumstances there is certainly an activity which will come in the category of 'manufacture' or 'production' under section 80-IA of the Income Tax Act. As find from the facts of the case in the year under appeal are identical to that of A.Y. 2005-06 also find that certain new facts were brought on record by the Assessing Officer like on production of lorry receipts by assessee before A.O. to prove that the goods have not been manufactured by the assessee. CIT (A) has followed the order of A.Y. 2005-06 while deciding the appeal of A.Y. 2006-07. Thus the additional facts brought on record by A.O. should have been considered by CIT (A) while passing the order. Therefore in the interest of justice, the matter be remanded back to the file of CIT (A) for considering the additional facts brought by A.O. and pass a speaking order thereafter. Thus this ground of the Revenue is allowed for statistical purpose. In the result, appeal of the Revenue for A.Y. 2005-06 is dismissed and appeal of Revenue for A.Y. 2006-07 is allowed for statistical purposes.
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