Assessee's Deduction Entitlement Upheld under Sections 80IB and 10B

The Tribunal upheld the Assessee's entitlement to deductions under sections 80IB and 10B, dismissing the Revenue's appeals in both cases. The Tribunal confirmed the CIT(A)'s decisions, ruling in favor of the Assessee regarding the eligibility for deductions under the Income Tax Act.

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Issues:
1. Appeal filed by the Revenue against the order of CIT(A) regarding deduction under section 80IB of the Income Tax Act.
2. Claim of deduction under section 10B by the Assessee.

Issue 1:
In the first appeal (ITA No. 215/PNJ/2013), the Revenue challenged the CIT(A)'s decision to delete the addition made by the Assessing Officer under section 80IB of the Income Tax Act. The Revenue contended that the Assessee's business activity did not fall under manufacturing activities within the ambit of section 80IB, thus disputing the entitlement to the deduction. The Tribunal referred to a previous decision where it was held that the Assessee's manufacturing activities qualified for deduction under section 80IB. The Tribunal, following the principle of consistency, dismissed the Revenue's appeal, confirming the deduction under section 80IB for the Assessee.

Issue 2:
Regarding the claim of deduction under section 10B in the same appeal (ITA No. 215/PNJ/2013), the Assessee, being a 100% Export Oriented Unit (EOU), computed the deduction as per the provisions of section 10B(4). The Assessing Officer disagreed with the Assessee's computation, specifically concerning the inclusion of the sale of scrap in the profit from the business. The Tribunal analyzed section 10B(4) and concluded that the sale of scrap should be included in the profit of the business for calculating the deduction under section 10B. Consequently, the Tribunal upheld the CIT(A)'s decision to include the sale of scrap in the profit for computing the deduction under section 10B, dismissing the Revenue's appeal on this ground.

Issue 3:
In the second appeal (ITA No. 216/PNJ/2013), the only issue was the claim of deduction under section 10B by the Assessee. Both parties agreed that this issue was similar to the one in the first appeal (ITA No. 215/PNJ/2013) concerning the deduction under section 10B. Since the Tribunal had already dismissed the Revenue's appeal in the first case, it confirmed the CIT(A)'s order and dismissed the Revenue's appeal in the second case as well.

In conclusion, the Tribunal upheld the Assessee's entitlement to deductions under sections 80IB and 10B, dismissing the Revenue's appeals in both cases based on the consistent application of legal principles and statutory provisions.

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