TMI Blog2015 (5) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) in the present case took note of the fact that the AO denied altogether the benefit of Section 80-IA on the terms that there was no manufacturing activity at all in Unit-II. The AO apparently completely ignored the fact that Section 80-IA benefit was enjoyed by the assessee for 1998-99 and 1999-2000. In this view, the CIT(A) - we think - quite correctly too - directed the AO to compute the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A of the Income Tax Act, 1961 (hereafter the Act ) was confirmed by the CIT(A). The ITAT rejected the revenue's appeal. The main order in the present batch of appeals is in respect of AY 2001-02 by the ITAT in ITA 3016/Del/2008. 3. The assessee was incorporated on 11.10.1989 and commenced production from 1990 in India. This manufacturing unit is known as Unit-I. It consequently established ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her equipment of Unit-I was being used for manufacturing activities of Unit-II. The CIT(A) went though the record and by order dated 16.05.2007 after noticing the decision in Textile Machinery Unit v. CIT 107 ITR 19 directed as follows: Thus in the instant case what was envisaged by the AO was to appropriate the profits, IF ANY, relating to the labour charges carried out by Unit-I and should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for computation purposes to allow such benefit of Section 80-IA, having regard to the activities in Unit-II, the benefit of the provision could not have been excluded altogether. The ITAT also recorded the finding that the assessee could not be accused of creating a tax evasion device. 5. We have considered the submissions of the revenue. The revenue urges that the ITAT's answer was unsust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was no manufacturing activity at all in Unit-II. The AO apparently completely ignored the fact that Section 80-IA benefit was enjoyed by the assessee for 1998-99 and 1999-2000. In this view, the CIT(A) - we think - quite correctly too - directed the AO to compute the portion of the benefits arising out of the manufacturing activities carried out in Unit-II and execute the component of job work in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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