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2022 (4) TMI 1383 - AT - Income TaxDeduction u/s 80IC - assessee is a partnership firm engaged in the business of manufacturing of herbal Velvette shampoo of various types and Nivaran-90 cough syrup - HELD THAT:- Where the authorized officer had given that most of the machinery physically verified during the survey were found to be old/second hand and were never used by the assessee allowed the claim of deduction u/s 80IC - the findings of the AO that some of the machinery were transferred to assessee’s business premises from Chennai where machines had been used by the assessee were not considered by CIT(A) before allowing the claim of deduction u/s 80IC which in our opinion is not justified under the facts and circumstances of the case. We further find the assessee did not file any revised form No.10CCB of the audit report before the survey to prove his claim of inadvertent error and value of old machinery and depreciation claimed and this issue was not properly dealt with by the CIT(A). Since the ld.CIT(A) has allowed the claim of the assessee without appreciating the findings of the survey report and the fact that the assessee has failed to prove that the items of old machinery excluded from manufacturing process is not more than 20% for the purpose of deduction u/s 80IC, therefore, such order of the CIT(A), in our opinion is not a speaking order. We, therefore, deem it proper to restore the issue to the file of the CIT(A) with a direction to pass a speaking order considering the findings in the survey report and decide the issue as per fact and law, after giving due opportunity of being heard to the assessee. We hold and direct accordingly. The ground raised by the Revenue is accordingly allowed for statistical purpose.
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