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TMI Blog2012 (10) TMI 471X X X X Extracts X X X X X X X X Extracts X X X X ..... he arguments of both the parties and perusing the record, we have taken up the corresponding appeal of the assessee for disposal. ITA NO. 141/Hyd/12 3. This appeal filed by the assessee is directed against the order of the CIT(A)-IV, Hyderabad dated 28/12/2011 for the assessment year 2008- 09. 4. Briefly the facts of the case are that the assessee company is in the business of manufacturing and sale of Hot Rolled Strips and ERWS Pipes and Tubes (Electric Resistance Welded Mild Steel Sheet Pipes & Tubes. During the year, assessee company claimed deduction u/s.80IB amounting to Rs. 71,93,135 (@30% on net profit of Rs. 2,39,77,119/-) During the course of scrutiny proceedings the deduction claimed by the assessee company had been verified by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. IV. The book value of the Plant and Machinery should not exceed Rs. 3 Crores for the assessment year under consideration. 6. In view of the above conditions, the Assessing Officer held that for claiming deduction u/s.801B the assessee company should require to justify all the conditions for each and every assessment year. In this case the assessee company has not fulfilled column iv of the conditions i.e. "the book value of the Plant and Machinery should not exceed Rs. 3 Crores for the assessment year under consideration". During the course of scrutiny proceedings the asscssee"s authorized representative Shri Jasraj Shrishrimal, was asked to explain as to why the deduction claimed u/s.801B of the I.T. Act should not be disallowed as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The investment limit fixed by the circular No. SO 1288(E) dated 241999 of Industries Development and Regulation Act of Rs. 1 Crore and: 5 Crores was inserted in place of earlier general limit of Rs. 3 Cronis, fixed by the Circular No. SO 857(E) dated. 10-12- 1997, without keeping -in mind the provisions of Income Tax Act. In view of the above, it is submitted that the claim made by us is genuine and is in accordance with the letter and spirit of Section 80IB and may therefore be allowed". 8. The Assessing Officer held that the submissions made by the assessee's authorized representative vide letter dated: 12-08-2010 is not acceptable for the following reasons: "For the purpose of Section 80IB "Small Scale Industrial Undertakings me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of CIT v. Vegetable Products Ltd (1973) 88 ITR 192 (SC) followed in CIT v. Multi Metals Ltd (1991)188 ITR 151 (Raj), CIT v. Bharat Nidhi Ltd. (1983) 141 ITR 740 (Del) and crr v. International Computers Ltd., (1981) 131 ITR 1 (Bom). 10. He further submitted that an incentive provision meant for growth of industrial growth particularly SSI shall be liberally construed. Once the underlying purpose of an enactment is served, there is no reason why the deduction should be restricted on one pretext or other. Following case laws are relevant and supports the case of appellant. i) Bajaj Temp- Ltd V s. crr (1992) 196 ITR 188 (SC) . ii) CIT Vs Krishna Copper & Steel Rolling Mills (1992) 193 ITR 281 (SC). iii) CIT Vs Baby marine Exports (2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14. On the other hand, the learned DR relied upon the orders of the authorities below. 15. We have heard the arguments of both the parties, perused the record and gone through the orders of the authorities below. We find that the crux and main issue based on which learned assessing officer in his impugned order denied the deduction is that the claim of the company for deduction U/s.80IB is in contravention of see 80IB(2)(iii) of the Income tax act, and therefore cannot be allowed. 16. For being considered as a SSI, it is required to be a Small Industrial Undertaking within the meaning of section 80 IB(14)(g). However, even though it is claimed that the incentives provided by sec. 11B of the IDR Act, 1951 were replaced by the Micro, Small ..... X X X X Extracts X X X X X X X X Extracts X X X X
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