Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (5) TMI 683 - AT - Income TaxDeduction u/s 80IC - deduction denied as assessee not doing any manufacturing or processing activity but only mixing and repacking various ingredients and thus no finished product distinct from the raw material has come into existence, which may fall within the meaning of words "manufacturing, processing and production" - HELD THAT:- Similar issue decided in KHUSHBU INDUSTRIES [2016 (11) TMI 68 - ITAT LUCKNOW] claim of deduction under section 80IC is admissible. We have also noted that, as noted by the Assessing Officer, just because the assessee has used certain raw materials in the organic and inorganic chemicals, it does not mean that the product manufactured is also in the nature of organic or inorganic chemicals. There is also a categorical finding to the effect that “the products manufactured by the assessee fall under chapter 33 related to ‘essential oils, resinoids, perfumery, cosmetic or toilet preparations’ and donot fall under chapter 28 or 29 dealing with organic/ inorganic chemicals”. Nothing has been brought before us to dislodge these findings. We, therefore, see no merits in the grievances of the Assessing Officer. Assessee is engaged in manufacturing and production of an article and therefore, the assessee shall be entitled for the deduction available u/s 80IC of the Act. We accordingly confirm the order of CIT(A) as in our opinion, no illegality or infirmity is found in the order of CIT(A). Decided in favour of assessee.
|