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2018 (3) TMI 520 - AT - Income TaxDeduction u/s 80IC - manufacture of external hard disk and DVD writer - even qua the laptops and mouse the deduction allowed was withdrawn - AO was of the view that the assessee needed to demonstrate that the commodity which was subjected to the process of manufacture could be identified as a different character in name as well as in use i.e; a distinct commodity had come into creation as a result of his manufacturing activity. Held that:- Apex court in the case of CIT-V versus Oracle software India Ltd (2010 (1) TMI 9 - SUPREME COURT OF INDIA) wherein the duplicacy process was considered to have changed the basic character of a blank CD which thus became dedicated to a specific use. In the facts of the present case the specific steps processes have been identified the employees are available a partner of the assessee firm having a technical qualification is available on record the product being manufacture/produce admittedly does not use heavy electricity or heavy machinery similarly does not require highly literate, technically qualified staff the fact that the individual parts on going through the process of manufacture result in production of products which are separate and distinct from the sum total of the purchased parts which are identified as separate products in the market having separate and distinct identity from its individual parts. The claim has been rejected on suspicious and surmises ignoring the facts on record and on an incorrect appreciation of law for the reasons set out herein above at length. Accordingly for the reasons set out herein above the claim of the assessee is allowed.
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