TMI Blog2015 (4) TMI 627X X X X Extracts X X X X X X X X Extracts X X X X ..... es provided by outside agencies would also qualify for benefits of Section 80I. In Krishak Bharti Cooperative Limited V. Deputy Commissioner of Income Tax [2013 (7) TMI 632 - DELHI HIGH COURT], a Division Bench of this Court held that service charges received from the owner of the unit, could in fact be considered as profit derived from an industrial undertaking and thus be entitled for deduction under Section 80I. In other words, even though the ownership of unit, from which the profit was derived by the industrial undertaking claiming deduction under Section 80I, did not vest with it, the Court held that it was entitled to the said benefit - Decided in favour of the assessee - ITA 126/2001 - - - Dated:- 7-4-2015 - S. Ravindra Bhat An ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... least 10 workers were engaged in the manufacturing process. From the order of the ACIT it is not clear as to whether this requirement was satisfied while claiming the deduction under section 80I. The ITO will, therefore, look into the claim of the assessee for deduction under section 80I and satisfy himself that at least 10 workers were engaged in the manufacturing process during the year and allow the deduction as per law. 3. The revenue s appeal to the Income Tax Appellate Tribunal was accepted and the order of the CIT(Appeals) was reversed. The ITAT held as follows : I have heard the rival submissions. Admittedly, more than 10 employees were not on the pay rolls of the assessee. It was submitted that the persons employed through ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertaking in order to qualify for the deduction should be involved in inter alia, production of articles or things and should employ 10 or more workers in manufacturing process carried on with the aid of power or in a manufacturing process carried on without the aid of power, employ 20 or more workers. Considering that the provision is a beneficial one and meant to provide relief to industrial undertaking involved in manufacturing. The restrictive interpretation placed by the ITAT in the circumstances of the case is not justified. 6. There is nothing in Section 80I(2)(iv) to say that the relationship in order to qualify for the term employment must be one of master and servant and cannot extend to contractual employment. That the concep ..... X X X X Extracts X X X X X X X X Extracts X X X X
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