TMI Blog2021 (3) TMI 363X X X X Extracts X X X X X X X X Extracts X X X X ..... factual position. This has led to the issuance of a notice/order dated 01.11.1999 by the Commissioner of Income Tax (Central), Chennai stating that Mr.Francis Joseph has obtained the certificate under Section 90(2) of the Finance (No.2) Act, 1998 by making a false declaration. In the said notice/order, it was also mentioned that Mr.Francis Joseph, by letter dated 21.10.1999, has expressed his consent for the adjustment of tax of ₹ 8,69,338/- paid by him under KVSS Scheme towards the tax payable by the assessee before us under the KVSS in view of the inclusion of Francis Joseph's income for the relevant year 1994-95 in the hands of the assessee before us. All the above facts will clearly show that there is no error in the order pas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant/Revenue and Ms.Vandhana, learned counsel for Mr.R.Sivaraman, learned counsel for the respondent/assessee. 4.The short issue, which falls for consideration, is whether the Tribunal was right in allowing the claim of deduction under Section 80IA of the Act. 5.The argument of Mr.T.R.Senthil Kumar, learned Senior Standing Counsel is that the assessee miserably failed to fulfil the conditions stipulated under sub-Section (7) of Section 80IA of the Act. 6.The case has had a chequered history pursuant to a search, which was conducted during 1997. The assessee had gone before the Income Tax Settlement Commission, Chennai (for brevity the Settlement Commission ) and an order dated 22.07.1999, was passed under Section 245D(1) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pose, then the assessee would qualify for deduction, since he had qualified on the other condition, viz., manufacture of an article or thing. 8.As noted above, the said Francis Joseph has been held to be a benamidar. In fact, the assessee had accepted the factual position and the matter proceeded from the said stage. 9.The Revenue challenged the order passed by the Commissioner of Income Tax (Appeals)-18, Chennai (for brevity the CIT(A) ) dated 31.01.2018, which held that the assessee was entitled to claim deduction under Section 80IA of the Act. The Revenue, being aggrieved by such order, filed appeal before the Tribunal raising only two grounds stating that the assessee was using already existing machinery and cannot be stated to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me by filing a declaration and certificate was also issued. Subsequently, the assessee addressed the Department on 27.09.1999, stating the factual position. This has led to the issuance of a notice/order dated 01.11.1999 by the Commissioner of Income Tax (Central), Chennai stating that Mr.Francis Joseph has obtained the certificate under Section 90(2) of the Finance (No.2) Act, 1998 by making a false declaration. In the said notice/order, it was also mentioned that Mr.Francis Joseph, by letter dated 21.10.1999, has expressed his consent for the adjustment of tax of ₹ 8,69,338/- paid by him under KVSS Scheme towards the tax payable by the assessee before us under the KVSS in view of the inclusion of Francis Joseph's income for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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