2013 (5) TMI 1007 - AT - Income Tax

Summary

Issues involved: Appeal by Revenue against CIT(A) order regarding deduction under section 80IB of the Income-tax Act, 1961.

Summary:

Issue 1: Deduction under section 80IB
The appeal was filed by the Revenue against the CIT(A) order directing the Assessing Officer to restrict the deduction under section 80IB of the Income-tax Act. The assessee, engaged in the business of photographic films, claimed a deduction of &8377; 86,50,402 under section 80IB, which was disallowed by the Assessing Officer. The CIT(A) examined the issue in light of the judgment of the Hon'ble Apex Court in India Cine Agencies vs. CIT [2009] 308 ITR 98, where it was held that the conversion of jumbo rolls of photographic films into small flats and rolls amounts to manufacturing eligible for deduction under section 80IA of the Act. The CIT(A) allowed relief to the assessee but restricted the deduction to profits earned on manufacturing done in March 2006 only, resulting in an addition of &8377; 4,17,987. The Tribunal confirmed the CIT(A) order, stating that the issue was adjudicated in accordance with the judgment of the Hon'ble Apex Court.

Decision:
The appeal of the Revenue was dismissed, and the order was pronounced in the open court on 28/05/2013.