Tribunal affirms deduction for separate units in plastic manufacturing.

The Tribunal upheld the Commissioner of Income-tax (Appeals) decision allowing deduction under section 80-IB for each independent unit operated by the assessee, engaged in manufacturing plastic pipes and fittings. The Revenue's appeal challenging the deduction claimed by the assessee for the assessment year 2010-11 was dismissed. The Tribunal emphasized treating each unit as independent for the purpose of claiming deduction under section 80-IB, in line with previous Tribunal decisions in the assessee's favor for earlier assessment years.

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Issues:
- Appeal challenging order of Commissioner of Income-tax (Appeals) regarding deduction under section 80-IB of the Income-tax Act, 1961.

Analysis:
1. The Revenue filed an appeal challenging the order of the Commissioner of Income-tax (Appeals) regarding the deduction claimed by the assessee under section 80-IB of the Income-tax Act, 1961 for the assessment year 2010-11. The issue in question was the relief granted by the Commissioner of Income-tax (Appeals) reversing the decision of the Assessing Officer who rejected the deduction claimed by the assessee amounting to Rs. 2.73 crores under section 80-IB of the Act.

2. The assessee, engaged in the business of manufacturing plastic pipes and fittings, claimed deduction under section 80-IB of the Act at different rates for different units. The Assessing Officer rejected the claim, but the Commissioner of Income-tax (Appeals) allowed it based on previous Tribunal decisions in the assessee's favor for assessment years 2006-07 and 2007-08. The Tribunal consistently held that deduction under section 80-IB should be allowed unit-wise, treating each unit as independent.

3. The Tribunal found no infirmity in the Commissioner of Income-tax (Appeals) order as it correctly followed the Tribunal's previous decisions. The Revenue's appeal was dismissed, upholding the allowance of deduction under section 80-IB for each independent unit operated by the assessee. The decision was pronounced on June 23, 2015, by the Bench comprising B. R. Baskaran (Accountant Member) and Amit Shukla (Judicial Member).

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