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2022 (8) TMI 1328 - AT - Income TaxDeduction u/s 80-IB - manufacturing by the industrial undertaking - Denial of deduction as assessee firm has not caried out any manufacturing activity at its industrial undertaking at Daman on or before 31.03.2004 - HELD THAT:- From the above judgment of the Hon`ble Bombay High Court in the case of Anglo French Drug Co. (Eastern) Ltd [1991 (2) TMI 63 - BOMBAY HIGH COURT] it is abundantly clear that it is not necessary that the manufacturing company must manufacture the goods by its own plant and machinery at its own factory. If in substance the manufacturing company has employed another company for getting the goods manufactured by it under its own supervision or control, the assessee can be considered as a company engaged in manufacture of goods and, thus, an industrial company. Therefore, we note that in the assessee`s case under consideration, assessee received orders from customers to supply the goods to them and the assessee executed these orders by way of manufacturing done by M/s Nangalwala Chemical Industries of Alwar, under the direct supervision of one of the partners. The assessee applies own technology, standard process, own raw material, own quality control/check, and the goods are manufactured as per the specification given by customers. Based on these facts and circumstances, we note that assessee is entitled to get deduction under section 80-IB of the Act. Hence, we direct the assessing officer to allow deduction under section 80IB - Appeal filed by the assessee is allowed.
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