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TMI Blog2012 (12) TMI 412X X X X Extracts X X X X X X X X Extracts X X X X ..... f the delay and the explanation furnished by the appellant, we condone the delay and proceed to dispose of these appeals also on merits. Revenue's Appeal : ITA 321/Hyd/2010 : Assessment year 2005-06 3. The solitary issue involved in this appeal relates to the deduction claimed by the assessee under S.80IB of the Act. 4. Briefly the facts of the case are that the assessee company is engaged in the manufacturing and printing of lottery tickets and security instruments. For the assessment year under dispute, the assessee filed its return of income declaring total income of Rs. 10,47,740, after claiming deduction of an amount of Rs. 3,81,035 under S.80IB of the Act. In the course of the assessment proceedings, the assessing officer on examining the assessee's return found that during the year, the assessee's investment in plant and machinery has exceeded Rs. 1 crore. Therefore, the assessee cannot be considered as a small scale industrial unit, as per the Gazette Notification issued by the Central Government, vide S.O. No.857(E) dated 10.12.1999. Since S.80IB(ii) provides for exemption to small scale industrial unit, and as the assessee no longer remained a small scale industrial un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under S.80IB of the Act. The CIT(A) after considering the submissions of the assessee and taking note of the notifications of the Central Government, with regard to investment limit of the SSI unit and subsequent clarifications issued in press note, directed the assessing officer to verify the original documents regarding registration and if it is found that the assessee was registered as an SSI unit before 24.12.1999, then the assessee will be entitled for deduction under S.80IB of the Act. The finding of the CIT(A) is extracted hereunder for the sake of convenience- "6. I have gone through the facts of the case. It is clear that the claim of deduction u/s. 80IB has been denied to the appellant society on the basis of notification SO 857(E) dt.10.12.1999, though the correct date of said notification was 10.12.1997. The Assessing officer did not consider the subsequent notification dt.24.12.999 and further clarifications issued in this regard, which have been discussed above. However, it is contended by the appellant that it had received the requisite registration on 04.,02.1999 itself, which is well before the date of 24.12.1999 mentioned in the clarification dt.19.10.2000. Under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacture or producing articles or things. S.80IB(14)(b) defines a small scale industrial undertaking, which is regarded as such under S.11B of the Industries(Development and Regulation) Act, 1951. As is evident from the assessment order, the assessing officer has disallowed the claim of deduction under S.80IB by relying on the Gazette notification dated 10.12.1999 issued by the Central Government reducing the investment limit from Rs. 3 crore to Rs. 1 crore in case of small scale industrial undertaking. In the aforesaid context, it has to be determined whether the assessee can be regarded as a small scale industrial undertaking as per S.80IB(14)(g). The Ministry of Industry, Government of India, in exercise of power conferred under S.11B of the Industries (Development and Regulation) Act, 1951 issued a notification on 10.12.1997 notifying that an industrial undertaking, where investment in fixed assets and plant and machinery does not exceed Rs. 3 crores shall be regarded as small scale industrial undertaking. The Ministry of Commerce, Government of India on 24.12.1999 issued a gazette notification amending the notification dated 10.12.1997 by reducing the investment limit in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) to the assessing officer to verify the original documents and allow deduction under S.80IB, if registration has been obtained prior to 24.12.1999 is most appropriate and does not call for any interference. We therefore, uphold the same, and dismiss the ground raised by the department. 11. In the result, this appeal of the Revenue is dismissed. Revenue's Appeal : ITA 322/Hyd/2010 : Assessment year 2006-07 12. Grounds raised by the Revenue in this appeal are identical to the ones raised in the appeal ITA No.321/Hyd/2010. For the reasons discussed in paras No.8 to 10 hereinabove, while dealing with the Revenue's appeal ITA No.321/Hyd/2010 for the assessment year, we uphold the directions given by the CIT(A), and reject the grounds of the Revenue in this appeal. 13. In the result, this appeal of the Revenue is dismissed. Assessee's Appeal : ITA No.385/Hyd/2012 : Assessment year 2008-09 14. In this appeal of the assessee directed against the order of the CIT(A) IV, Hyderabad dated 30.12.2011 for the assessment year 2008-09, the solitary issue involved is with regard to disallowance of the assessee's claim for deduction under S.80IB of the Act, which has been confirmed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts were given to parties from outside the State is that the parties will not claim refund of the income tax deducted at source from the bills, under the Sikkim Income Tax Manual 1948. The CIT(A) holding that TDS deducted from the bills of the assessee under the Sikkim Income Tax Act being in the nature of a rate or tax on the profits and gains of the business of the assessee as envisaged under S.40(a)(ii) of the Act, sustained the disallowance made by the assessing officer. 21. The learned Authorised Representative submitted before us that the Finance, Revenue and Expenditure Department of the Government of Sikkim issued a Circular on 19.8.2004 to all Government agencies within the State instructing them that before any supply order is placed or contract agreement is signed with a party from outside the State, a condition has to be incorporated that no claim regarding refund of income deducted under the Sikkim Income Tax Manual shall be entertained. The learned Authorised Representative further submitted that even though the assessee requested for not deducting tax at source, the Director(Lotteries), Government of Sikkim had expressed that deduction of tax at source at the rate o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ikkim Income Tax Manual, is after determination of profit in accordance with a machinery provision comparable with the provisions of the Indian Income Tax Act, or whether it is on the basis of a rough estimate. In this regard, the provisions of Sikkim Income Tax Manual is also required to be looked into. We find from the record that these aspects have not at all been examined by the lower authorities. We therefore, consider it appropriate to restore this issue to the file of the assessing officer, to consider this issue afresh keeping in view our observations hereinabove, and of course, after giving a reasonable opportunity of hearing to the assessee. 24. In the result, assessee's appeal, ITA No.339/Hyd/2010 for assessment year 2005-06 is allowed for statistical purposes. Assessee's Appeal : ITA No.340/Hyd/2010 : Assessment year 2006-07 25. In this appeal by the assessee directed against the order of the CIT(A) dated 15.12.2009 for the assessment year 2006-07, there are two effective grounds taken by the assessee, which are against Sl.No.2 and Sl.No.3. 26. In the first effective ground, which is against Sl. No. 2. the grievance of the assessee is against the addition of Rs. 4,7 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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