TMI Blog2019 (1) TMI 1018X X X X Extracts X X X X X X X X Extracts X X X X ..... sment year relevant to the previous year in which the industrial undertaking begins to manufacture or produce articles or things. It was in this context, the question arose before the Assessing Officer. As noted, the CIT(A) and the Tribunal concurrently came to the conclusion that the initial year for assessee was A.Y. 1994-95. This was on the basis of material produced by the assessee to establish that it was only in this period that the assessee had procured the material and started manufacturing. The registration as an industrial unit was granted only during the said period. We find no perversity in the finding of the Tribunal. The decision of this Court in case of Penwalt India Ltd. [1991 (4) TMI 33 - BOMBAY HIGH COURT] was ren ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irmation of the orders of the CIT(A) who, deleted the addition on the basis of the Auditor's affidavit, while ignoring that the business activity as per the partnership deed had commenced in the year 1992, when machinery for in-house stitching of apparel was in production as per facts of record? (iii) Whether in law and on the facts of the instant case, was the Tribunal justified in ignoring the decision of the jurisdictional High Court in CIT Vs. Penwalt India 196 ITR 813 , where manufacturing includes also goods produced by outside parties? (iv) Whether in law and on the facts of the instant case, was the Tribunal justified in confirming the orders of the CIT(A) ignoring the fact that all the firm claimed deduction u/s 80HH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut that there is a vital difference between commencement of the partnership and the commencement of the industrial undertaking. 5. These contentions were accepted by the CIT(A) and the Tribunal. The Assessing Officer had relied on a decision of this Court in case of Commissioner of Income Tax Vs. Penwalt India Ltd. 196 ITR 813 to hold that in case of the assessee, the initial year was 1992-93. 6. As is well known, Section 80IB of the Act grants certain deduction of profits and gains from certain industrial undertakings. Sub-section (3) of Section 80IB of the Act provides that such deduction at the specified rate would be available to such industrial undertaking for a period of 10 consecutive assessment years, beginning with the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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