TMI Blog2017 (2) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... erred to in section 80-IC of the Income-tax Act. Therefore, when the assessee installs/erects the self-manufactured stone crushing plants and service them at the customer's site, the amount received from such service, is nothing but earnings from the business of manufacturing activity. - Decided in favour of assessee - I. T. A. No. 5 of 2014 - - - Dated:- 8-11-2016 - Hrishikesh Roy And L. S. Jamir, JJ. For the Appellant : R. Goenka, A. Goenka and U. K. Borthakur For the Respondent : S. Saikia, Standing Counsel JUDGMENT 1. Heard Mr. R. Goenka, the learned counsel appearing for the appellant. Also heard Mr. S. Sarma, the learned standing counsel for the Income-tax Department, representing the respondent. 2. This appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wahati but, the appellate authority by its order dated November 29, 2010 declared that the service and erection charges are not derived from the business of manufacturing activity of the assessee and thus the earnings under that head is not eligible for deduction, under section 80-IC of the Income-tax Act. According to the Commissioner of Income-tax (Appeals), the service and erection charge was merely incidental income attributed to manufacture and thus the order of the assessing authority was upheld on November 29, 2010 (annexure B) by the appellate authority. 5. The above decision of the appellate authority was challenged by the assessee before the Income-tax Appellate Tribunal, Guwahati Bench and the learned Tribunal by the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur of the assessee. 8. The section 80-IC was inserted in the Income-tax Act with effect from April 1, 2004 under the Finance Act, 2003, and thereby growth incentives in respect of undertakings in certain special category States, were inserted. For the eligible undertaking, in computing the total income of the assessee, deduction from such a profit and gain is to be allowed, under section 80- IC. Here it is not disputed that the business of manufacturing activity of stone crushing plants and machinery, is entitled for deduction under the special provision of section 80-IC of the Income-tax Act. Hence, we are to determine whether the amount received by the manufacturer, for erection and servicing of stone crushing plants at the site of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacturer was also the issue for consideration of the Himachal Pradesh High Court for deduction under section 80-IB of the Income-tax Act. The Division Bench in their judgment of November 7, 2009 while deciding I. T. A. No. 39 of 2006 (Spray Engineering Devices Ltd. v. Asst. CIT) after threadbare discussion of the legal issues, declared that when a manufacturer is required by the customer to erect and commission the machinery, the amount received by the manufacturer on this count, is the income derived from the business itself and therefore, the same is eligible for deduction under section 80-IB of the Income-tax Act. 12. When we examine the judgments referred to by the Departmental authorities to answer the issue against the assessee, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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