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2019 (12) TMI 965 - ITAT DELHIDeduction u/s 80IC - manufacture items of Perfumes and Fragrances in the notified area - Assessee submitted that even in the case of lessor at the same premises in question, the Department has granted deduction u/s 80IC vide Order under section 143(3) - Assessee also filed copy of Notification Dated 27.08.2008 to show that factory unit of the assessee falls within the notified area - HELD THAT:- assessee produced all documentary evidences before the authorities below to show that it has began to manufacture items of Perfumes and Fragrances in the notified area. The same were supported by documentary evidences i.e., Excise Records and Sales Tax assessment etc., The assessee furnished GRs of transportation and bills etc., and C-Form to show that assessee entered into genuine business activity. Though A.O. has raised so many objections at assessment stage and Ld. CIT(A) dealt with each and every item, but, Department has filed revised ground only on few items. Thus, the genuineness of the activities of manufacturing conducted by the assessee at Baddi have not been challenged by the Revenue in the revised grounds of appeal. These facts clearly show that assessee has entered into genuine business activities. Even if sales are made to three parties only, there is nothing wrong against the assessee. It may also be noted here that in respect of some items of manufacture, A.O. has allowed the claim of assessee in scrutiny assessment under section 143(3) for A.Y. 2013-2014 vide Order Dated 31.03.2016 after calling a report from Income Tax Officer, Baddi. Therefore, rule of consistency apply to the facts of the case and Department cannot take a different stand against the assessee in different assessment years. It may also be noted here that it has not been clarified, whether report of the Inspector or statement of Shri Kusum Kumar Sethia was supplied to the assessee for rebuttal ? Therefore, such report and statement cannot be read in evidence against the assessee. It may also be noted here that it is a Departmental Appeal and no documentary evidences have been produced before us to contradict or rebut the finding of fact recorded by the CIT(A) in favour of the assessee. Therefore, in the absence of any evidence against the assessee on record, it is difficult to take a contrary view as have been taken by the CIT(A). In view of the above discussion, we do not find any infirmity in the finding of fact recorded by the Ld. CIT(A) to allow the claim of assessee for deduction under section 80IC - Decided in favour of assessee.
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