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2013 (10) TMI 513 - AT - Income TaxDisallowance of Deduction u/s 80-IC - manufacturing activity - conversion of Jumbo Rolls of photographic films into small flats and rolls in desired sizes - when assessee came into existence and whether geographically it is located with the notified area contemplated in sub-clause (ii) of sec. 80-IC(2)(a) or (2) (b) – Held that:- assessee partnership firm came into existence on Ist of December 2003. It is situated at Plot No.11 Sector 4, Sidcul, integrated industrial estate, Haridwar. It had commenced the production on 18th October 2004. The A.O. himself admitted that deduction under sec. 80-IC was granted to the assessee continuously since assessment year 2005-06. Whether the activity is manufacturing activity or not - Held that:- the assessee has carried out the manufacturing activity. It has been granted deduction under sec. 80-IC of the Act from the last four assessment years. The department is unable to lay its hands on any concrete material which can force us to take a different view then the stand of the Assessing Officer in earlier four assessment years. Assessee is entitled for deduction under sec. 80-IC of the Act. Deduction on account of DEPB Credit - Held that:- the issue is covered against the assessee in Liberty India v. CIT [2009 (8) TMI 63 - SUPREME COURT] - DEPB receipts were not derived from an industrial undertaking rather their genesis was from the beneficiary scheme formulated under Central Excise Act etc. They were the ancillary profit - amendment suggests that on sale of DEPB receipts, if there was any profit, then it will be a revenue receipts - We find that this amendment was brought by Act of 2005, w.e.f. 01.04.1998 - the Assessing Officer was directed to allow the deduction under sec. 80-IC of the Act as per law excluded on the DEPB receipts. – Decided partly in favour of Asseessee.
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