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2016 (8) TMI 104 - GUJARAT HIGH COURT

2016 (8) TMI 104 - GUJARAT HIGH COURT - TMI - Disallowance of deduction claimed u/s.80IA - Held that:- From the records it is borne out that the unit is registered with the Central Excise Department and Sales Tax Authority which charges excise duty on the goods dispatched from the undertaking at Daman. The Excise Register maintained by the assessee is being verified by the Central Excise and Customs Department. Learned advocate for the revenue could not rebut this finding. Moreover, from the rep .....

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u/s 263 or 147 was taken against the assessee. Therefore we do not see any reason for interference so far as the first question is concerned. - With regard to the question regarding disallowance of salary, we are of the view that the Tribunal has rightly proceeded on the footing that since at the time of inspection it was found that the employees were actually engaged in the factory at Daman and merely that the assessee has not employed employees regularly it cannot be the basis of disallow .....

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NAIK, ADVOCATE ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) 1. Being aggrieved and dissatisfied with the impugned judgment and order passed by the Income Tax Appellate Tribunal, Ahmedabad Bench (hereinafter referred to as ITAT) dated 02.05.2008 & 06.03.2009 in ITA No. 3714/Ahd/2003 2747/Ahd/2006 for the Assessment Year 2000-01 & 2001-02 respectively, the revenue has preferred the present Tax Appeals for consideration of the following substantial question of law: 2. This Court .....

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arly about eight years after the end of the previous year relevant to the A.Y. 2000- 01? 3.Whether on the facts and circumstances of the case, the Appellant Tribunal was justified in law in deleting the addition of ₹ 1,97,678/- by relying on the physical inspection made by the Appellate Tribunal on 08/02/2008, i.e., nearly about eight years after the end of the previous year relevant to the A.Y. 2000-01? TAX APPEAL NO. 1486 OF 2009 Whether the Appellate Tribunal was justified in upholding .....

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pt claimed for two employees. The Assessing Officer further noted that the assessee had not debited wages to the Manufacturing Account but debited only on account of salary and as such he inferred that the assessee did not engage the requisite number of workers in the industrial unit to be eligible for claiming deduction u/s 80IA. On appeal the CIT (Appeals) deleted the disallowance. On appeal before the ITAT, by the revenue, vide impugned judgment and order, ITAT dismissed the appeal and confir .....

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er of CIT(A). 3.2 Being aggrieved and dissatisfied with the impugned judgment and order passed by the ITAT, the revenue has preferred the present Tax Appeals for consideration of the aforesaid substantial question of law. 4. Mr. Sudhir Mehta, learned Counsel appearing on behalf of the revenue submitted that the Asessing Officer has discussed in detail as to why the assessee is not eligible for deduction u/s 80IA in para 2.2 of the assessement order for the assessment year 2000-01. He submitted t .....

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been deleted. 5. We have heard learned advocates for both the sides. It is required to be noted that Section 80IA of the Act allows the deduction to an assessee where the gross total income of an assessee includes any profit and gain from any business of an industrial unit or of the business enumerated under subsection (1) to which this section applies. The assessee claimes to have a manufacturing unit at Daman which falls at item no. 14 under Eighth Schedule. The Tribunal has observed that so f .....

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