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2013 (9) TMI 197 - AT - Income TaxExemption u/s 10B of the Income Tax Act - manufacturing of special purpose plants - whether assembly activity is manufacturing activity - export in dissembled forum for the purpose of transporation - Assessee company was located in 100% EOU situated in Noida Export Processing Unit, Noida, U.P. This zone was custom bounded area - There is no indirect cost - The expenditure on the electricity for the year was nominal Held that:- Equipment were purchased by assessee as per its technical specifications and drawings and after inspection they was assembled together to make a Down Shop Lead for the Electrically Operated Travelling Crane (EOT). After testing for current carrying capacity and other factors they were disassembled and properly packed. Facts show that the plants are supplied in the form of sub-assemblies and components manufactured or after getting manufactured as per the prescribed specifications. These sub-assemblies and components were manufactured outside transported to the NSEZ, Noida and thereafter, certain operations are carried out and disassembling was done prior to export the subassemblies and components to the ultimate destination. This process is also required for containerization and packing of these items on account of size which is necessary for transportation and installation. Reliance has been placed upon the judgment in the case of CIT vs. Jackson Engineers Ltd [2009 (12) TMI 649 - Delhi High Court ], wherein it was held that activity of assembling gensets from various components amount to manufacture or production Apart from it, reliance has been placed upon various other case laws s.a. CIT vs. I. Tech Electronics [2012 (4) TMI 223 - Gauhati High Court ]; CIT vs. Chiranjjeevi Wind Energy Ltd [2011 (1) TMI 421 - MADRAS HIGH COURT], wherein it was held that assembling amounting to manufacture In the present case, relying upon the judgments in above cases, it was held that assessee was engaged in the manufacturing of assembling the plants which were disassembled for exports Relief granted u/s 10B of the Income tax act Decided against the Revenue.
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