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2020 (11) TMI 95 - AT - Income TaxDeduction u/s.80IB - proof of manufacturing activity of the assessee - whether no re-structuring of any business in existence? - whether no business was ever carried out by the said entity so much so that neither any plant & machinery was acquired by the said entity nor any business activity was commenced by them? - HELD THAT:- An examination of the given documents clearly indicates that prior to the electric connection from Reliance Energy, the assessee was availing electricity connection from the Government of Goa ; the application for license to work was made by the assessee on 22.03.2002; the provisions of section 6 & 7 of the Factories Act, 1948 clearly indicate that there is no bar in occupying the factory premises, using it for manufacture and commencing the production there from before obtaining the final license from the prescribed authority; in the said application dated 22.03.2002 it was also declared that the manufacturing process is already commenced by the assessee on 19.03.2002, the computation of income for AY 2002-03 filed along with the return also stated that it was the first year of claim and that deduction was not claimed solely due to loss. A perusal of the excise returns filed before the Excise Authorities for the period from March 2002 to March 2003 as well as sales tax returns before the Sales Tax Authorities for the quarters pertaining to the financial year 2002-03, clearly indicates that manufacturing activity and corresponding sales was carried out by the assessee. Thus it cannot be said that the manufacturing activity of the assessee had not started till the receipt of the factory license. The ledger account of the plant & machinery in the books of the assessee for the year ending 31.03.2002 along with copies of the bills/invoices also indicates purchase of new machinery during the said period. It is further evident that the block of asset had started during AY 2002-03 and fixed asset statement of the assessee for the AY 2003-04 would show opening WDV. find merit in the contentions of the Ld. counsel that although the original certificate was granted to M/s Konkan Plastics, no business was ever carried out by the said entity ; except the SSI license and the lease hold rights in the plot, no activity was ever carried out by the said entity. The excise returns and sales tax returns filed by the assessee clarify the issues in the instant case. The plant & machineries, as evidenced by the invoices, have been purchased by the assessee ; the manufacturing activity was carried out by the assessee at its own premises. In the case of CIT v. Western Outdoor Interactive P. Ltd. [2012 (8) TMI 709 - BOMBAY HIGH COURT] has held that “where a benefit of deduction is available for a particular number of years on satisfaction of certain conditions under the provisions of the Income Tax Act, 1961, then unless relief granted for the first year in which the claim was made and accepted is withdrawn or set aside, the Income Tax Officer cannot withdraw the relief for subsequent years. - Decided against revenue.
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