2012 (1) TMI 12

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....year 2006-2007. The question relates to deduction of Rs.83,60,017/- claimed by the assessee under Section 80IC of the Act.   2. The Tribunal in the impugned order dated 17th March, 2010 has upheld the findings of CIT(A) that the new industrial undertaking set up by the assessee in the assessment year 2005-06 at Dehradun qualifies for deduction under Section 80IC of the Act and the said undertaking was not established by re-constructing the business/ manufacturing activities of M/s Broadcasting Equipment (India) Pvt. Limited. 3. The Assessing Officer had held that the industrial undertaking set up by the assessee at Dehradun did not qualify for deduction under Section 80IC as the said premises was taken on rent at Dehradun; the re....

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....of raw material of Dehradun." 5. With regard to the issue of reconstruction and purchase from M/s Broadcasting Equipment (India) Pvt. Limited, the CIT(A) has held that M/s Broadcasting Equipment (India) Pvt. Limited was never engaged in any manufacturing activity thus, no unit/undertaking was sold. The CIT(A) has recorded that M/s Broadcasting Equipment (India) Pvt. Limited were in the business of trading in audio and video equipments and other electronic goods etc. Accordingly, plant and machinery was sold by M/s Broadcasting Equipment (India) Pvt. Limited to the respondent-assessee and were installed at the Dehradun unit/undertaking. M/s Broadcasting Equipment (India) Pvt. Limited was never engaged in the manufacturing activity and the....

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....w of the findings recorded by the Assessing Officer and the question/issue examined by the Tribunal as is reflected from paragraph 1 of the order of the Tribunal. Accordingly, we are inclined to frame the following substantial question of law:- "Whether the Income Tax Appellate Tribunal is right in allowing the deduction of Rs.80,63,017 under Section 80-IC of the Income Tax Act,1961?." 8. We have heard counsel for the parties on the said question and proceed to answer the same.   9. The Assessing Officer while examining deduction under Section 80-IC in paragraph 3 of the assessment order has recorded that against an overall turnover of Rs.25.14 crores, the turnover of the Dehradun undertaking as declared was Rs.1.45 crores and....