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2019 (1) TMI 1018 - HC - Income TaxInitial year of commencement of assessee's manufacturing activity for the purpose of deduction under Section 80IB - Held that:- Section 80IB of the Act grants certain deduction of profits and gains from certain industrial undertakings. Sub-section (3) of Section 80IB of the Act provides that such deduction at the specified rate would be available to such industrial undertaking for a period of 10 consecutive assessment years, beginning with the initial assessment year. The term “Initial Assessment Year” has been explained in subsection (14) to Section 80IB of the Act inter alia as to mean, in case of an industrial undertaking, the assessment year relevant to the previous year in which the industrial undertaking begins to manufacture or produce articles or things. It was in this context, the question arose before the Assessing Officer. As noted, the CIT(A) and the Tribunal concurrently came to the conclusion that the initial year for assessee was A.Y. 1994-95. This was on the basis of material produced by the assessee to establish that it was only in this period that the assessee had procured the material and started manufacturing. The registration as an industrial unit was granted only during the said period. We find no perversity in the finding of the Tribunal. The decision of this Court in case of Penwalt India Ltd. [1991 (4) TMI 33 - BOMBAY HIGH COURT] was rendered in entirely different background. It was a case in which the assessee had claimed expenditure on scientific research. The Court held that the assessee can be said to be engaged in the manufacturing activity, which is done directly by himself or even in which the assessee engages the services of somebody else on contract basis. It was found that the manufacturing activity carried on behalf of the assessee was also under the direct quality control and supervision of the assessee. On such findings, the Court granted the depreciation allowance to the assessee. - decided against Revenue
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