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2014 (2) TMI 87 - AT - Income TaxDeduction u/s 80IA/80IB of the Act – Held that:- The CIT(A) has ascertained the factual aspect of the case and found that there was manufacturing activity carried out by the assessee - the AO has come to the conclusion that there was no manufacturing activity carried out by the assessee and against this finding CIT(A) noted that the assessee has given evidence with regard to purchase of machinery at the factory at Silvassa, evidence in the form of number of workers employed and the entire manufacturing account - there is nothing on record brought out by the AO to disprove that no manufacturing activity actually took place at Silvassa - The assessee was able to show the Sale Tax Returns filed with Silvassa Sales Tax Office in support of his arguments. The assessee has furnished the purchase bill for machinery, evidence of supply of raw material at the factory at Silvassa, records filed with the statutory authorities, registration with the Directorate of Industries as small scale industry - the AO was directed to allow the deduction claimed by the assessee for all the four assessment years - There was no reason to interfere in the findings of the learned CIT(A) - the CIT(A) has allowed deduction under Section 80IA/80IB on the amount received against manufactured items, however, learned CIT(A) has denied deduction under Section 80IA/80IB on the ground of interest earned on fixed deposit - The assessee has not challenged the denial of deduction in respect of interest as the assessee has challenged through its cross objections only in respect of reopening of the assessment – Order of the CIT(A) upheld – Decided against Revenue.
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