2015 (4) TMI 627

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.... MR. Justice S. Ravindra Bhat (OPEN COURT) 1. The question of law framed by this Court for decision in this appeal is: "Whether relationship of master and servant is necessary to claim deduction under 80I of the Income Tax Act, 1961?" 2. The appellant concededly employed and utilised the services of workers through the contractor Buta Singh. At the relevant time during the assessment y....

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....ntitled for the deduction if it has employed at least ten workers whether casual or regular the appellant will have to satisfy the requirement that at least 10 workers were engaged in the manufacturing process. From the order of the ACIT it is not clear as to whether this requirement was satisfied while claiming the deduction under section 80I. The ITO will, therefore, look into the claim of the a....

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....e company. As such, in my opinion, those persons cannot be treated as employees of the assessee company. Finding given in this regard by the assessing officer is correct in my opinion. Accordingly, I reverse the order of the Commissioner of Income Tax (Appeals) and restore that order of the assessing officer." 4. This Court has carefully considered the grounds of appeal as well and heard the co....

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....dertaking in order to qualify for the deduction should be involved in inter alia, production of articles or things and should employ 10 or more workers in manufacturing process carried on with the aid of power or in a manufacturing process carried on without the aid of power, employ 20 or more workers. Considering that the provision is a beneficial one and meant to provide relief to industrial und....