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2022 (8) TMI 776 - AT - Income TaxAddition made on account of disallowance of administrative services charged to TACO - HELD THAT:- Respectfully following the Order of Hon’ble Bombay High Court [2019 (5) TMI 200 - BOMBAY HIGH COURT] and ITAT Pune in assessee’s own case [2016 (4) TMI 993 - ITAT PUNE], the appeal of the revenue regarding Administrative service charges is dismissed. Thus, Ground Number 1 of the revenue is dismissed. Eligibility for deduction u/s.80IC - Whether assembly would constitute manufacturing? - HELD THAT:- Revenue has not raised any ground of violation of rule 46A. AR argued that the Assessing Officer has never challenged the installation of machinery, but the AO has not allowed the deduction only on the ground that the Assessee is merely doing assembly and not manufacturing. DR could not rebut this fact. It is a fact that in the assessment order the assessee has not challenged the installation of machinery. The Audit Report filed under Rule 18BBB was before the AO and he has not pointed out any discrepancies in the Audit report. CIT(A) has allowed the appeal of the assessee stating that assembly would constitute manufacturing if new product is formed & the clientele are different relying on various judicial pronouncement - CIT(A) has given the finding that both these conditions are fulfilled by the assessee. On perusal of the submission of the assessee we agree with the findings of the ld.CIT(A). It is observed that in the case of Tata Motors & Locomotive company Ltd [1967 (2) TMI 22 - BOMBAY HIGH COURT] has held that assembly of imported CKD parts into finished products constitute assembly. Therefore, we uphold the findings of the Ld.CIT(A) regarding assessee’s eligibility for deduction u/s.80IC. Accordingly, the Ground No.2 of the Revenue is dismissed.
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