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2018 (11) TMI 1328 - ITAT DELHIDeduction u/s 80IC - proof of manufacture - whether the article claimed to be produced/manufactured by assessee falls under the negative list of article i.e. Thirteenth Schedule at SI. No. 20 being "plastics and articles thereof' and is thus covered u/s 80-IC(2)(a) - Held that:- The assessee has submitted the excise classification that what is the plastic and articles thereof and what are the products manufactured by the assessee. According to that the mere products Manufacturer by the assessee are not articles of plastic. Further the place where the assessee has eligible industrial undertaking was also proved to be notified area for setting up of the industry which is eligible for exemption. The assessee has also shown the relevant rent agreements by which assessee is in possession of the relevant land area. To establish the date of the commencement the assessee has shown that the date of commencement of the unit is 31/3/2010, on the date on which the first sale bill was prepared. Same was also confirmed by the sales tax records and excise records of the assessee. The assessee has also shown the details of the machinery for the purpose of manufacturing of the specified item. Such details are also furnished along with copies of bills etc. The amount of purchases from the related party are also very minuscule that is only of ₹ 5 9568/–. Even otherwise this is not the first year of the claim of the assessee but second-year of the Holiday period of 10 years. In view of this we confirm the finding of the learned CIT appeal in deleting the disallowance of deduction under section 80 IC - decided against revenue Allowing carry forward business losses and unabsorbed depreciation for the earlier years - Held that:- We find that production had commenced from the first year onwards and this is the second year of the operation. Even otherwise Commencement of production or not is not a criteria for allowing such losses. In any case in the AY 2012-13 b/f losses have to be allowed if the losses were claimed in the return of income and the returns were filed in time. It is not the allegation of the revenue that assessee has not claimed this in the return of income or the returns were filed late. Set off and carried forward of losses are governed by section 70 to 80 of IT Act 1961. The grounds for disallowing the losses are not covered in any section from 70 to 80. According to us the action of the learned assessing officer cannot be sustained of not granting the credit of brought forward losses or unabsorbed depreciation. Even otherwise the unabsorbed depreciation is mandatory and becomes the depreciation of the current year. - decided against revenue
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