Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (1) TMI 1480 - HC - Income TaxDeduction u/s 10B - “manufacture” for the purposes of Section 10B - conversion of gold into mountings, outsourced by the assessee - assessee is a partnership firm engaged in manufacturing of diamond studded gold jewellery - Held that:- The respondent-assessee was granted permission by the Government to make only handmade jewelery. Accordingly, nature of manufacturing activity carried out by the respondent did not require huge plant and machinery and the absence of plant and machinery could not lead to conclusive presumption that there was no manufacturing activity. The Tribunal further recorded the fact that the material produced by the respondent has not been contradicted or shown to be incorrect by the Revenue. Further, the small amount of labour charges and wages being the basis of the disallowance was also considered by the Tribunal and it was found that the Revenue had not carried out any examination / enquiry to ascertain what would be the fair market value of the labour charges and wages in this sort of activity. Thus, there is no reason to disbeleive the respondent. - Decided against revenue.
|