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2017 (4) TMI 572 - AT - Income TaxDeduction u/s.80IC in respect to third party manufacturing done by the assessee - rectification application - Held that:- CIT(A) has taken note of the JCIT’s order u/s. 144A wherein the JCIT has clearly made a finding that the assessee is engaged in the manufacturing and selling of the products on its own account and is also manufacturing the products as per specification of third party by using its raw material, packing material etc. and is selling finished products to the third parties after charging VAT. This particular fact has been reconfirmed by the Ld. CIT(A) in the impugned 154A proceedings from the AO vide report dated 16.05.2013 wherein the AO has confirmed the finding of the JCIT on this issue. CIT(A) has also taken note of the fact that in the subsequent assessment year i.e, AY 2010-11 the AO himself has given deduction to the assessee for third party manufacture in the assessment order passed u/s. 143(3) of the Act on 30.03.2013. Since the JCIT and AO have confirmed that the claim made by the assessee under the head ‘third party manufacture’ was indeed executed by the assessee as per the specification of third party, however the goods/products were manufactured by the assessee using its own raw material, packing material etc. and has sold the finished products to such third parties after charging VAT and further, we note that in the subsequent assessment year 2010-11 the AO himself has allowed the claim of the assessee in respect to third party manufacture and held it as qualifying for 80IC deduction, so, we do not find any infirmity in the order passed by the Ld. CIT(A) and, therefore, dismiss the appeal of the revenue.
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