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2015 (2) TMI 456 - HC - Income TaxEligibility for deduction u/s 80 IB (2) (iv) - as per revenue basic conditions for claiming the deduction is that the industrial undertaking employs ten or more workers in the manufacturing process and that the same does not include the Manager or Supervisor - Held that:- In the instant case, admittedly, a Works Manager is like a highly technical qualified worker having managerial responsibility, likewise, a Supervisor is also like a highly skilled supervisory worker. Therefore, both these persons cannot be taken out from the categories of workers. It is well known that 'manufacturing process' includes all activities in relation to manufacture, therefore, the same encompasses the entire process of converting raw material into finished goods to make it commercially expedient and even handling and transfer of raw material is integrally connected with the process of manufacture. In the aforementioned background, we see no reason to disagree with the finding recorded by the ITAT upholding the findings of the CIT (A) qua deduction under Section 80 IB - Decided in favour of assessee. Disallowance u/s 69A - ITAT deleted the addition - Held that:- The ITAT while upholding the order of CIT (A) observed that it was very clear that the Assessing Officer had not pointed out any defect or discrepancies in the books and that even the availability of cash of ₹ 25,000/- with each member of the family was also considered to be reasonable, therefore, in the circumstances, there was no justification in partly accepting the entries made in the memoranda books and partly rejecting the same. According, the finding of CIT (A) in respect of deletion of addition of ₹ 6,55,270/- was upheld by the ITAT by dismissing the appeal of the revenue.- Decided in favour of assessee.
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