TMI Blog2004 (8) TMI 720X X X X Extracts X X X X X X X X Extracts X X X X ..... following grounds: 1. On the facts and in the circumstances of the case and in-law, the learned CIT(A) erred in directing the Assessing Officer to allow the deduction under section 80-IA on the service charges by holding that the same forms part and parcel of manufacturing activity ignoring the reasons given by the Assessing Officer in the assessment order for the conclusion that the service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this service charges related to preparing project evolution report, technical feasibility and planning etc., which were not coming in the manufacturing activity. These service charges were further held not subjected to excise duty and sales tax, which indirectly proved that they were not part of manufacturing activity. These charges, were held not eligible for deduction under section80-IA of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, there was a direct nexus between the receipts fromrendering services and maintenance facility to its clients and lease rent and the main business activity of the assessee. Thus, the assessee was entitled to deduction under section 80-I in respect of that income. The learned DR object in that case, a direct nexus wasproved. It is not the case here and so the assessee's claim is not a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are not subjected to sales tax or excise duty. That being so, they are nothing but part of the sales. Hence, they cannot be segregated from the manufacturing activity. It has been noticed a sun-refuted fact that the service charges were received from only very few concerns to whom manufactured items were supplied, and not others to whom manufactured items were not sold. Thus, services are inextric ..... X X X X Extracts X X X X X X X X Extracts X X X X
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