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2014 (4) TMI 936 - AT - Income TaxDeduction u/s 80IC – Manufacture activity - air spring assembly - Held that:- The assessment order for the assessment year 2007-08 shows that the deduction u/s. 80IC has been allowed even in assessment u/s. 143(3) of the Act - Relying upon CIT vs. Modi Industries [2010 (8) TMI 51 - DELHI HIGH COURT] - once the claim for deduction u/s 80J has been allowed to the assessee in the first year and also for the subsequent two years, such deduction was allowable in the subsequent assessment years within the period of 5 years - the assessee has been granted deduction u/s. 80IC in earlier years and that also in assessment u/s 143(3) of the Act - Now in the 3rd year the Revenue cannot suddenly take up the ground that the assessee is not doing any manufacturing and therefore, is not entitled for deduction u/s. 80IC. The assessee is engaged in manufacture and production of an article or thing named air spring assembly - The assessee imports air spring component (fitted in the top plate) and emergency air spring component (fitted in the emergency spring and calibrated with the bottom plate) - These items are imported from Germany from M/s ContiTech Luftfedersysteme GmbH (Hannover, Germany) - Rest all other goods / raw materials required in the manufacturing process are procured from India and employed by the Appellant in the manufacturing process at the Paonta Sahib Unit - The description of manufacturing process amply proves that the imported material as well as local materials are used in a manufacturing process which results in a final product which is quite distinct from the components used, and has distinct usage too – thus, the order of the CIT(A) set aside and the Assessee was engaged in manufacturing of air spring assembly and is hence eligible for deduction u/s. 80IC for the manufacturing activity undertaken at its Paonta Sahib unit – Decided in favour of Assessee.
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