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TMI Blog2014 (1) TMI 952X X X X Extracts X X X X X X X X Extracts X X X X ..... l before or during the course of the hearing of the appeal. It is prayed that the order of the CIT(A) being contrary to the facts on record and the settled position of law, be set aside and that of the Assessing Officer be restored." 2. The relevant facts of the case are that the assessee e-filed its return declaring an income of Rs.21,84,860/-. The case was selected for scrutiny under CASS. Accordingly after issuance of notice u/s 143(2) alongwith notice u/s 142(1) and questionnaire etc, scrutiny assessment order was passed. A perusal of the same shows that the assessee is a proprietorship concern consisting of two partners namely Sh. Arvind Nanda and Mrs. Shobhna Suri having equal profit sharing ratio. In the year under con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT (2009) 183 Taxman 349(SC). The AO was of the view that the income derived by the assessee was to be taken as income derived from the ancillary income for the assessee and deduction u/s 80IC of the Income Tax Act as such was not to be allowed on such income. Accordingly an addition of Rs.49,08,068/- was made holding the same to be the income from job work not allowable as a deduction u/s 80IC. 3. In appeal before the CIT(A), the assessee submitted that it had two small scale industrial undertaking, one at Noida which produces blinds etc and other at Pant Nagar which produces steel roofing. It was submitted that the industries set up in Pant Nagar industrial area are eligible for exemption from paying excise duty. Consequently a number of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur charged on work done on material supplied by the customers qualifies for deduction under section 80IB of the I.T.Act, 1961". Therefore it is prayed that the disallowance/addition made on account of the claim under section 80IC of the IT Act, 1961 may kindly be deleted. Though the addition/adjustment made on account of job-work deserves to be deleted as covered by the decision of the jurisdictional High Court, it is submitted alternately as a matter of abundant precaution and without prejudice to the contention that the job work charges are eligible for deduction u/s 80IC of the I.T.Act, 1961, it is submitted that the working of the income from job charges by the Assessing Officer is also wrong as he has consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... centives, in the sense that they are not "derived" from the eligible business. Whereas the appellant's reliance on the numerous judgements, including the recent ruling of the Jurisdictional High Court in the case of CIT vs Sadhu Forging Ltd (2011) 336 ITR 444 (Del) is considered apt. The learned Court has held - "It was immaterial that the assessee was doing the job of forging also for customers and was charging them on job-work basis or on the basis of labour charges. It will still be qualified as carrying on eligible business under section 80IB. Same is the ratio of the decisions in the case of (i) Commissioner of Income tax v Metalman Auto (P) Ltd. (2011) 52 DTR (P and H) 385; (ii) Commissioner of Income tax v Vallabh Yarns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the department to go through the judgement and the paper book. 7.1 On the next date of hearing, Ld. Sr. DR placed reliance on the AO and in response to the query from the Bench addressing the legal position, no contrary decision was cited for consideration of the Bench. 7.2. Ld. AR on the other hand placed heavy reliance on the impugned order. Specific attention was invited to para 4 page 5 of the same contending that the detailed findings on facts are fully supported by CIT vs. Sadhu Forging Ltd.(cited Supra) which has been relied upon and not disputed by the department. 8. On a consideration of the finding under challenge arrived at in the impugned order which has been reproduced by us in the earlier part of this order in para 5 and o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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