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2022 (9) TMI 811 - AT - Income TaxDeduction u/s. 80IB - disallowance of deduction as conditions cumulatively as are stipulated u/s 80IA(2) not met by assessee - assessee could not produce evidence to substantiate that it has employed twenty or more worker in the manufacturing process , while secondly , the assessee failed to produce evidence to substantiate the installation of machinery - HELD THAT:- Assessee has to cumulatively meet all the stipulated conditions u/s 80IA before any deduction can be allowed, and the onus is on the assessee to demonstrate that it complies with all the stipulated conditions , as it is the assessee who is claiming deduction u/s 80IA from the profits and gains of business. The exemption provisions are to be strictly construed. Even if we accept that books of accounts, vouchers etc. were destroyed in a fire, firstly the assessment order in first round was passed prior to the date of fire, and secondly even if primary evidences are not available, the assessee could have collected secondary evidences to demonstrate its bona-fide in case of installation of plant and machinery during the year under consideration , such as report(s) submitted to Directorate of Industries (DIC), or report submitted under MSME Act, report to Service tax department, report to Excise department etc. indicating installation of plant and machinery , trial runs and commencement of production, reports from machinery suppliers , electricity departments etc. could have been brought on record, to justify/substantiate its stand. Similarly, for employment of twenty or more worker in manufacturing process, reports/returns submitted under ESI/PF, TDS, or to any other government agencies specifying number/name etc of worker employed ,or payment of wages by bank etc. could have been procured as secondary evidence to justify employability of twenty or more workers in manufacturing process. Despite three round of litigation , the assessee is not able to justify/substantiate the meeting of conditions for claiming deduction u/s 80IA - Thus, presumption has to be drawn against the assessee, and we hold that the assessee is not entitled/eligible for deduction u/s 80IA of the 1961 Act as it has failed to meet the conditions cumulatively as are stipulated u/s 80IA(2), and this appeal filed by assessee lacks merit and is dismissed.
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