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TMI Blog2015 (5) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... tion under Section 80IB on profits derived from industrial undertaking on job work contract is to be allowed?" 2. The brief facts of the case are as follows: The assessee is engaged in the manufacture of automotive components made of aluminium castings. The assessee filed return of income for the respective assessment years claiming deduction under Section 80IB of the Income Tax Act on the works contract. The assessment was completed at the first instance and later it was reopened. Subsequently, after issuance of notice, the assessment was completed by the Assessing Officer denying the claim of deduction under Section 80IB and determined the total income by making additions. 3. Aggrieved by the said addition, the assessee preferred appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the appellant's employees. The appellant has also furnished a flow chart of operating personnel with regard to its operations from which it is observed that all the staff including its supervisory staff are employees of the appellant. The Hon'ble jurisdictional High Court in the case of Taj Fire Works (supra) had clearly held that an assessee who is engaged on job work basis and who satisfies the test of manufacture by producing a new material which is different from the raw material is entitled to special deduction under section 80HH and 80I. The appellant has filed evidences in the form of flow charts, photographs of the various stages of manufacture, raw material used and final products which confirm the fact that the end prod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch is relatable to enterprises falling under sub-section (4) of Section 80IA, was not applicable in a case of claim under Section 80IB of the Income Tax Act. 9. Assuming for a moment that certain clauses of Section 80IA was made applicable by virtue of sub-section(13) of Section 80IB, we find that the said provision is applicable only in respect of sub-section (5) and sub-sections (7) to (12) of Section 80IA and not in relation to sub-sections (4) and (13) of Section 80IA. Therefore, there cannot be any controversy on this issue, as the claim of the respondent/assessee does not fall under Explanation to sub-section (13) of Section 80IA of the Income Tax Act. 10. For better clarity, Section 80IA(13) and Section 80IB(13) read as follows: D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction from such profits and gains of an amount equal to such percentage and for such number of assessment years as specified in this section ....... (13) The provisions contained in sub-section (5) and sub-sections (7) to (12) of section 80-IA shall, so far as may be, apply to the eligible business under this section" 11. A plain reading of the above-said provision makes it clear that the provisions contained in sub-section (5) and sub-sections (7) to (12) of Section 80-IA alone are applicable and not sub-section (4) or (13) of Section 80-IA of the Income Tax Act. 12. We, therefore, hold that no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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