Tribunal Upholds Deduction for Manufacturing Activity of Anchor Rods Under Section 80 IC

The Tribunal dismissed the Revenue's appeal and upheld the CIT(A)'s order allowing the deduction u/s 80 IC for the manufacturing activity of anchor rods. The Tribunal relied on consistency with earlier rulings in the assessee's case, finding that both the threading and painting of anchor rods and the manufacturing of anchor rods by third parties on job work basis qualified for the deduction.

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Issues involved: Appeal against CIT(A) order regarding deduction u/s 80 IC for manufacturing activity of anchor rods.

Issue 1: Deduction u/s 80 IC for threading and painting of anchor rods
The Revenue contended that the threading and painting of anchor rods by the assessee did not amount to manufacturing, thus challenging the allowance of deduction u/s 80 IC. The Tribunal found that the issue was previously addressed in the assessee's own case and upheld the CIT(A)'s decision based on the Tribunal's earlier ruling.

Issue 2: Manufacturing of anchor rods by third parties on job work basis
The Revenue argued that manufacturing of anchor rods by third parties on job work basis should not be considered for deduction u/s 80 IC. However, the Tribunal referred to previous rulings in the assessee's case for assessment years 2005-06 and 2006-07, where similar claims were allowed by the Tribunal. The Tribunal upheld the CIT(A)'s decision to allow the deduction u/s 80 IC based on consistency with earlier orders.

In conclusion, the Tribunal dismissed the Revenue's appeal and upheld the CIT(A)'s order allowing the deduction u/s 80 IC for the manufacturing activity of anchor rods.

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