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2016 (9) TMI 455 - AT - Income TaxRevision u/s 263 - Claim of deduction u/s 80IB - Held that:- The assessee has filed complete details along with copy of audit report and also explained how job work charges is eligible for deduction u/s 80IB of the Act. The A.O. after considering the explanations furnished by the assessee and also taken into note of judicial judgments relied upon by the assessee allowed the claim of deduction u/s 80IB of the Act. Therefore, we are of the view that the CIT was not correct in coming to the conclusion that the A.O. has not conducted proper enquiry of the issues before completion of assessment. We further observed that as regards the eligibility of deduction u/s 80IB of the Act towards job work charges, the assessee contended that it is into the business of manufacturing of goods which is eligible for claiming deductions u/s 80IB of the Act. In addition to its own manufacturing, it has taken up job work for others in view of the spare capacity available. We find that the A.O. has not doubted the activity of the assessee. But, he is of the opinion that only goods manufactured by the assessee on its own is eligible for deduction, but not job work done for others. We do not agree with the stand taken by the A.O., for the reason that once the assessee is involved in the business of manufacture of goods or articles which is eligible for claiming deduction u/s 80IB of the Act, job work done in the spare capacity available also eligible for deduction u/s 80IB of the Act. We further observed that the said section does not place any restriction on job work receipts. Once, assessee proves that it is involved in the eligible business i.e. manufacturing of goods or article which is eligible for claiming deduction, it is immaterial whether it manufactures on its own or manufactures for others. So long as it is in the business of manufacturing of goods or articles, it is eligible for deduction u/s 80IB of the Act. - Decided in favour of assessee
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