2015 (3) TMI 63

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....ther in the facts and circumstances of the case, the Tribunal was right in holding that the revision made by the CIT under Section 263 is bad in law? ii) Whether in the facts and circumstances of the case, the Tribunal was right in allowing the deduction under Section 80-) in respect of tower testing activity, etc.? 2. The respondent/assessee is a company engaged in the business of designing and transmission microwave towers used in power sectors, telecommunication and mobile phone operations.  The assessee, in the course of assessment for the assessment year 2002-2003, claimed deductions under Section 80-O of the Income Tax Act in respect of tower testing activities, which the assesses characterized as 'design'.  The a....

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.... held that the assessee has drawn the design as per the requirement of the owners, but whether this will take away the requirement of Section 80-O or not.  In similar facts in the case of Ontrack Systems Ltd. - Vs  ACIT, the Chennai Bench of the Tribunal, in I.T.A. No.442/Mds/2004 by order dated 13th October, 2006, in which one of us, namely, the Judicial Member is a party, while dealing the issue of drawing of website, has held as under :- It is seen that this development work is highly specialized work which includes state-of-the-art programming, technical writing, imaging and animation skills having original ideas, artistic as well as intuitive.  In view of the above technical aspects, this development work involved in th....

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....e CIT is bade in law and the same is quashed. Aggrieved by the said order of the Tribunal, the appellant/Department is before this Court by filing the present appeal. 4. Learned counsel appearing for the respondent/assessee, raised a preliminary objection as to the maintainability of the case of the appellant by submitting that as per Instruction No.1979 dated 27.3.2000 read with Instruction No.2 of 2005 dated 24.10.2005, for preferring a tax case appeal, monetary limit is fixed and only if the tax effect exceeds Rs. 4 Lakhs, appeal can be filed in respect of single cases and in respect of group cases, each case should individually satisfy the monetary limits and, therefore, cumulative tax effect cannot be taken into consideration. ....

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....ingly, i.e., in group cases, each case should individually satisfy the monetary limits and therefore cumulative tax effect cannot be taken into consideration.  The Assessee submits that the Assessee does not fall within any of the exceptions provided in the instruction mandating the department to prefer an appeal.  The total tax effect excluding interest is as follows: Disputed Issue Amount in Rs. Working Tax Effect in Rs. Deduction u/s 80-O 340966 Tax @ 35% SC @ 2% 1,19,338  2,387 1,21,725 8. The learned counsel appearing for the assessee also pleaded that the case of the assessee does not fall within the exceptions specified in Instruction No.1979 issued by the Central Board of Direct Taxes on 27.3.2000, where irre....