TMI Blog2018 (10) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 2011-12. 2. Revenue raised the following grounds in its appeal: - 1. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in not appreciating the fact that the assessee was held to be manufacturing on item which an delineated in the negative list contained in the Thirteenth Schedule of the Act and hence not eligible to claim deduction u/s 80IC of the Act. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in not appreciating the fact that the assessee has not submitted evidence to prove that the assets as laid down in section 80IC(4) of the IT. Act, 1961. 3. The appellant prays that the order of Ld. CIT (A) on the above ground be set aside and that of the assessing offer be restored. 3. At the outset the Learned Counsel for the assessee submitted that identical issue came up before the Tribunal for the Assessment Years 2008-09 2009-10 in ITA.Nos. 3381 3382/MUM/2013 and the Tribunal by separate orders dated 30.11.2015 upheld the order of the Ld.CIT(A) in allowing the claim of the assessee u/s. 80IC of the Act. Copies of the orders are placed on record. 4. Ld. DR vehemently supported the orders of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther observed that the profits will have to be re-adjusted as per the total expenditure shown in the TDS certificate and that assessee has not furnished the basis for computing the profit relating to installation activity. The assessee has shown the installation receipt as the manufacturing receipt the expenses shown for installation receipt are 57.2% of the total sales and limited the deduction allowable to amount of ₹ 7,72,73,252/- and thus worked out the addition of ₹ 3,02,85,395/-. 6. The Id. CIT(A) while dealing with the addition observed that there is no dispute on fact that assessee's industrial unit is located in an eligible area as certified by State Industrial Authorities and accepted by Excise Sales Tax Department and the unit is located in the area notified in the CBDT Notification dated 04.11.2003 and further observed that the report in form of 10CCB was filed during the assessment proceedings. The order of CIT(A) further opined that deduction u/s 80-IC, Industrial Undertaking are not manufactured or produced any article or things as specified in XIII schedule alternatively undertaking engaged in manufacturing or production of article specified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n any Export Processing Zone or Integrated Infrastructure Development Centre or Industrial Growth Centre or Industrial Estate or Industrial Park or Software Technology Park or Industrial Area or Theme Park, as notified by the Board in accordance with the scheme framed and notified by the Central Government in this regard, in the State of Himachal Pradesh or the Stale of Uttaranchal; or (iii) on the 24th day of December, 1997 and ending before the 1st day of April, 2007, in any Export Processing Zone or Integrated Infrastructure Development Centre or Industrial Growth Centre or Industrial Estate or Industrial Park or Software Technology Park or Industrial Area or Theme Park, as notified by the Board in accordance with the scheme framed and notified by the Central Government in this regard, in any of the North-Eastern States; (b) which has begun or begins to manufacture or produce any article or thing, specified in the Fourteenth Schedule or commences any operation specified in that Schedule, or which manufactures or produces any article or thing, specified in the Fourteenth Schedule or commences any operation specified in that Schedule and undertakes substantial expansio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hing contained in this Act, no deduction shall be allowed to any undertaking or enterprise under this section, where the total period of deduction inclusive of the period of deduction under this section, or under the second proviso to sub-section (4) of section. 80-IB or under section 10C as the case may be, exceeds ten assessment years. (7) 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 undertaking or enterprise under this section. (8) For the purposes of this section,- (i) Industrial Area means such areas, which the Board, may, by notification in the Official Gazette, specify in accordance with the scheme framed and notified by the Central Government; (ii) Industrial Estate means such estates, which the Board, may, by notification in the Official Gazette, specify in accordance with the scheme framed and notified by the Central Government; (iii) Industrial Growth Centre means such centres, which the Board, may, by notification in the Official Gazette, specify in accordance with the scheme framed and notified by the Central Government; (iv) Industrial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der passed by CIT(A), thus the ground raised in the present appeal by Revenue is rejected. 7. In the present appeal before us the Revenue has challenged the order of the Ld.CIT(A) in allowing the deduction u/s. 80IC of the Act. The Ld.CIT(A) followed the order of the Tribunal in ITA.No. 3381/Mum/2013 and allowed the claim of the assessee for deduction u/s. 80IC observing as under: - 5. Decision: - I have carefully gone through both the order of the AO as also the order of the Hon'ble Mumbai Tribunal (in ITA.No. 3381/Mum/2013, dated 30th November, 2015), a copy of which has been placed on record. The observations of the Hon'ble Tribunal at Para Nos. 8 and 9 are reproduced herewith. 8. The CIT(A) while dealing with the issue has called for remand report from AO, in the remand report, the AO accepted that there was no discrepancy in the income/receipt as per TDS Certificate and as shown in the account. Thus there was no case of transfer of eligible activity/unit to the eligible activity and thus by coming on conclusion that assessee fulfilled all the condition for claiming deduction u/s 80-IC of the Act, the AO was directed to allow such deduction after reduci ..... 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