1992 (11) TMI 149

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....ounds of objections: (i) The CIT(A) erred in confirming the application of net profit rate of 12.5% of the contract receipts. (ii) The CIT(A) erred in confirming the disallowance of deduction under s. 80HH in the asst. yr. 1985-86 and under s. 80-I of the IT Act, 1961, in the asst. yr. 1986-87. 2. Learned Representatives of the parties are heard. The assessee firm though maintained books of acc....

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....ions under s. 80HH in the asst. yr. 1985-86 and ss. 80HH and 80-I in the asst. yr. 1986-87 are concerned, in our judgment, the assessee is entitled to the same. The assessee was engaged in the business of construction of overhead water tanks, which require construction of piles. The construction of piles itself is a process of manufacture. In this connection, reference may be made to the order of ....