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2019 (10) TMI 1549 - AT - Income TaxEligibility for deduction u/s 80-IB - Manufacturing activity - activity of converting raw material into final product - converting poultry mash feed into pellet feed - whether change in the basic component or new or different article came into existence? - HELD THAT:- We find the Co-ordinate Bench of this Tribunal considering the order for A.Y. 2010-11 [2017 (4) TMI 1612 - ITAT KOLKATA] in assessee’s own case, wherein, it was held that the business of the assessee is eligible for deduction u/s 80-IB assessee's eligible undertaking itself was carrying out the complete activity i.e. from grinding till the pelletization. The raw materials once consumed could not be reconverted into the same position, Its utility gets changed, The prime raw materials such as, maize, soya oil, rice bran etc. can no more be regarded to be the rice bran, soya oil, maize. Decided against revenue. Addition on account of netting off the interest income - HELD THAT:- We find the issue is covered by the consolidated order of this Tribunal in assessee’s own case for Assessment Years 2008-09, 2011-12 & 2012-13 [2018 (1) TMI 1709 - ITAT KOLKATA] to hold that only net interest income after adjusting the interest expenditure is liable to be excluded while computing the profit eligible for deduction under section 80IB. We, therefore, find no infirmity in the impugned order of the ld. CIT(Appeals) giving relief to the assessee on this issue and upholding the same, we dismiss the appeal of the Revenue. Disallowance u/s 14A r.w.r. 8D(2) - Assessee argued assessee made investment in group companies which were for strategic business purposes and the said investments did not yield any exempt income during the year and without considering the same, the Assessing Officer disallowed the expenditure u/s 14A r.w.r 8D(2) - HELD THAT:- We find that no dividend was earned in the investments made in shares of the group associate companies in all cases but however the said issue is covered in favour of the Revenue by the decision Maxopp Investments Ltd. [2018 (3) TMI 805 - SUPREME COURT] The ld. AR submits that the assessee has no objection in remanding the matter to the file of Assessing Officer for his fresh examination in terms of the judgment of Hon’ble Supreme Court in the case of Maxopp Investments Ltd. (supra). We deem it proper to remand the matter to the file of Assessing Officer for his verification in the facts and circumstances of the case in terms of judgment of Hon’ble Supreme Court in the case of Maxopp Investments Ltd. (supra) and pass orders accordingly. Thus Ground Nos.7 & 8 raised by the Revenue are allowed for statistical purposes.
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