TaxTMI 
TaxTMI 
2017 (2) TMI 227
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....rt on June 19, 2014 : "Whether on facts and the circumstances of the case, the Tribunal was justified in law in holding that income received by the assessee during the assessment year in question from services/erection charges of plants and accessories was not a part and parcel of the income which it derived from their manufacturing activities from eligible undertakings/enterprises and, hence, they were not entitled to claim deduction available to them under section 80-IC of the Income-tax Act, 1961 ?" 3. The appellant is engaged in the business of manufacturing of stone crushing plants and accessories and they filed the return of income for the assessment year 2007-08 on October 31, 2007, disclosing certain income and claiming deduction....
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....thus the assessee was rightly held to be disentitled to deduction under section 80-IC, in respect of the service and erection charge. The decision against the assessee by all three forums, is the subject matter of the present appeal. 6.1. The appellant contends that service and erection charge received by the assessee for instalment of stone crushing machinery at the site of the customer, is directly connected with the income generated from the manufacturing activities and therefore, the disallowance to deduction of the earnings under this head, is contended to be irrational. 6.2. The learned counsel for the appellant, Mr. R Goenka submits that the judgments, which have been the basis for the conclusion drawn by the Assessing Officer and ....
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....ries in certain areas, the provisions of the statute should be liberally interpreted so as to advance the objective of enactment. This was the ratio declared by the Supreme Court in Bajaj Tempo Ltd. v. CIT [1992] 196 ITR 188 (SC). Therefore, we need to construe the law (if possible) in such a way, which will achieve the goal of the incentive providers, i.e. the legislators. 10. The assessee, we are concerned with here, is involved only with manufacturing activity of stone crushing plants and it is not installing or servicing machinery manufactured by others. The expression "profits and gains" derived from the business as mentioned in section 80-IC may not cover activities unrelated to the manufacturing but when the manufactured machinery i....
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....Himachal Pradesh High Court. Therefore we concern with the ratio of this judgment. 13. Let us also benefit by referring to the ratio of CIT v. International Data Management Ltd. reported in [2003] 261 ITR 177 (Bom) where the Bombay High Court was considering entitlement of deduction under section 80-IC for income, received on account of service and maintenance charge. In the context, the Bombay High Court declared that the income received by the assessee which rendered service and maintenance facilities for the clients, has a direct nexus with the main business activity of the assessee. Thus the issue on entitlement to deduction of earnings on service and maintenance charges, was answered against the Department. The ratio of this decision ....