TaxTMI 
TaxTMI 
TaxTMI 
2006 (11) TMI 129
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...., 2006, passed by the Income-tax Appellate Tribunal whereby for the assessment year 1993-94, the assessee's appeal (I. T. A. No.6130/1997) was dismissed and the Revenue's appeal (I. T. A. No. 154/1998) was allowed in part and for the assessment year 1994-95, the Revenue's appeal (I. T. A. No. 5354/1998) was allowed in part. Although the impugned order also allowed in part the Revenue's appeal (I. ....
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....dition thereto receives service charges and production linked incentives. There is no dispute in respect of the so-called "reimbursement of cost". The Commissioner of Income-tax (Appeals) has taken the view that the service charges received by the assessee could not be viewed as profits arising from the assessee's own manufacturing activity. In his opinion, these charges were linked to the manufac....
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....The splitting up of the price into cost of production and service charges is only for convenience and cannot result in the denial to the assessee of the benefit of section 80-I to the extent of such service charges. On a consideration of the facts of the case and the object of section 80-I of the Act, we are unable to accept the assessee's contention. In view of the concurrent finding of the Asses....
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....acturing of the items in question and not a third party. However, in the instant case, the Income-tax Appellate Tribunal while reversing the Commissioner of Income-tax (Appeals) on this point, has held that the machinery hire charges received by the assessee "could not be considered as profits derived from its industrial undertaking for the purpose of computing deduction under section 80-I." 5. W....