2016 (8) TMI 104

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....ar 2000-01 & 2001-02 respectively, the revenue has preferred the present Tax Appeals for consideration of the following substantial question of law: 2. This Court while admitting these matters framed the following substantial question of law for consideration: TAX APPEAL NO. 1423 OF 2008 1.Whether on the facts and circumstances of the case the Appellate Tribunal was right in directing to allow deduction u/s.80-IA of the Income tax Act, 1961? 2.Whether on the facts and circumstances of the case, the Appellate Tribunal was justified in law in deleting the addition of Rs. 70,04,573/- by relying on the physical inspection made by it on 08/02/2008, i.e. nearly about eight years after the end of the previous year relevant to the A.Y. ....

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....ncerned, the Assessing Officer made an addition on account of disallowance of deduction claimed u/s 80IA on 'incentive income'. The Assessing Officer made this addition on the basis of its own decision in the case of assessee itself for A.Y. 2000-01. On appeal the CIT (Appeals) deleted the disallowance. On appeal before the ITAT, by the revenue, vide impugned judgment and order, ITAT dismissed the appeal and confirmed the order of CIT(A). 3.2 Being aggrieved and dissatisfied with the impugned judgment and order passed by the ITAT, the revenue has preferred the present Tax Appeals for consideration of the aforesaid substantial question of law. 4. Mr. Sudhir Mehta, learned Counsel appearing on behalf of the revenue submitted that the As....

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....ean that the assessee was not engaged in the manufacturing of the generator. 5.1 From the records it is borne out that the unit is registered with the Central Excise Department and Sales Tax Authority which charges excise duty on the goods dispatched from the undertaking at Daman. The Excise Register maintained by the assessee is being verified by the Central Excise and Customs Department. Learned advocate for the revenue could not rebut this finding. Moreover, from the report of the Assessing Officer himself, there were more than 10 persons working in Daman. We have also gone through the report dated 23.06.2003 addressed by the ITO Ward-2, Mehsana that the assessee had purchased the diesel for the power requirement for the industrial un....