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2017 (1) TMI 940 - AT - Income TaxClaim of benefit under section 80IB - whether the activity carried out of production of Manganese Dioxide falls in the definition of manufacturing activity or not? - whether the assessee had started manufacturing activity/production on or before 31.03.2004 to claim benefit under section 80IB? - Held that:- From the activity carried out by the assessee, it reveals that it coverts the raw Manganese Ores into powder by removing the silicon there from and hence an entirely new product comes into existence. Thus in the light of the decision of the Hon’ble Supreme Court in the case of “Lucky Minmat Pvt. Ltd.” (2000 (8) TMI 6 - SUPREME Court ) and also in the light of the Notification dated 09.05.12, the activity carried out by the assessee can be safely said to be manufacturing activity. The department has not come with a specific stand that on which date the assessee has actually commenced the production. The department has only found fault with the date mentioned in the certificate (form 10CCB) regarding which the assessee has successfully explained that it was due to an inadvertent mistake on the part of Chartered Accountant. The correct and rectified certificate has been produced. Even it is not the case of the Revenue that the activity has commenced months later or in any subsequent year. There is a difference of only one day. The assessee from the evidences on the file has showed that since the date of limitation for claiming deduction was approaching, the assessee somehow, has been able to commence its manufacturing activity prior to 01.04.04 even though under some odd circumstances. The assessee has produced the relevant evidences like purchase of raw material, sales, use of electricity through generator set etc. Under these circumstances it can be safely said that the assessee has proved that the manufacturing activity commenced prior to 01.04.04. - Decided in favour of assessee
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