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2019 (6) TMI 140 - AT - Income TaxDeduction u/s 80IB denied - assessee is claiming to be a small scale industrial undertaking eligible for deduction u/s 80IB(3)(ii) - investment threshold limits in Plant and Machinery - 11B of the IDR Act OR MSME Act, 2006 - deduction denied on the grounds that its investments in Plant and Machinery exceeded the threshold limit for being classified as small scale industrial undertaking - HELD THAT:- The assessee has to fulfil criteria as laid down u/s 80IB(14)(g) every year as every assessment year is a separate unit before claiming deduction u/s 80IB(3). The Section 80IB(14)(g) of the 1961 Act in turn refers to IDR Act, 1951 and not MSME Act, 2006. Thus, notifications issued under IDR Act, 1951 will hold the field. We are inclined to restore this issue back to the file of the learned CIT(A) for denovo adjudication of this issue on merits in accordance with our aforesaid decision and reasoning as stipulated in preceding para’s of this order . The assessee is directed to produce all relevant material/evidences before learned CIT(A) including relevant notifications issued u/s 11B of the IDR Act, 1951 which is applicable to the previous year relevant to impugned assessment year to support its case in its defence . The learned CIT(A) is also directed to make necessary verifications of facts to determine whether assessee is a small scale industrial undertaking as per applicable notifications for the relevant period based on notifications issued u/s 11B of IDR Act, 1951 including computing exclusions as are provided under relevant notifications issued under IDR Act, 1951. Appeal of the assessee is allowed for statistical purposes.
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