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2024 (2) TMI 39 - ITAT DELHIBenefit of deduction u/s 80IC - activities of the assessee constitutes manufacture or not? - activities undertaken by the assessee regarding processing of raw material received from HUL and then feeding the processed raw material to the mother plant of HUL - Whether the commodity which is subjected to the process of manufacture? - HELD THAT:- Activities conducted by the assessee constitute manufacture. DR has also argued that HUL vide confirmation dated 21/12/2011 issued during the assessment proceedings for AY 2009-10 submitted that as per the agreement between the assessee and HUL, activities under taken by the assessee constitute C & F Services only. As evident from the record that the said confirmation obtained by the AO from HUL was not confronted with the assessee during the assessment proceedings and the document or the person who has issued the said document was not subject to any cross examination or cross verification. On the contrary, the documents produced by the assessee which are approvals granted by various regulatory authorities go to show that the activities conducted by the assessee are in the nature of manufacture. We are of the opinion that the CIT(A) has committed error in confirming the assessment order, accordingly, the assessment order and the order of the CIT(A) are hereby set aside and the A.O. is directed to allow the benefit of 80IC to the assessee. Appeals filed by the assessee are allowed.
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