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2017 (9) TMI 957 - AT - Income TaxDisallowance of deduction claimed u/s 10B - commencement of manufacture or production or articles or things - year of assessment - CIT(A) has decided the issue in favour of assessee and held that year of manufacture/production as a 100% EO for the purpose of eligibility of claim of under s.10B is FY 2001-02 relevant to AY 2002- 03 - Held that:- CIT(A) has examined the issue in perspective and has come to rightful conclusion on facts. The revenue could not bring any positive evidence other than the certificate from the Accountant to show that actual commencement of manufacture/production took place in FY 2000-01 relevant to AY 2001-02 indeed. On the other hand, the assessee has brought on record overwhelming evidences of factual nature to support its case that the manufacture or production articles or things as contemplated under s.10B of the Act could not have been carried out in FY 2000-01 relevant to AY 20001-02. The commencement of manufacture/production in 2002-03 is supportable by plethora of evidence in the form of return of income, financial statements, electricity bill, change of location plot for manufacture, certificate from sale tax authorities availability of plant and machinery etc. These evidences in totality leaves us in no doubt that year of commencement noted by the Accountant in its certificate was inadvertent mistake inconsistent with the underlying facts, for which relief claimed under s.10B of the Act cannot be denied. Mere authorization to enable the Assessee to import material or export produce in the earlier date would not ipso facto tantamount to commencement of substantial activity of ‘manufacture’/’production’. The Assessee has successfully discharged onus which lay upon it. Under the circumstances, we find no fault with the conclusion derived by the CIT(A) and refuse to interfere therewith. - Decided against revenue
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