2016 (6) TMI 1185

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....the case the Learned Commissioner of Income Tax (Appeals) has erred in confirming the action of the Learned Assessing Officer in issuing the assessment order without granting the appellant an opportunity of being heard and being not framed in accordance with the provisions of Section 143(3) and other applicable provisions of the Act. The action of the Learned Commissioner of Income Tax (Appeals) is contrary to the facts and circumstances of the case and law and deserves to be deleted. 3. On appreciation of the facts and circumstances of the case the Learned Commissioner of Income Tax (Appeals) has erred in confirming the action of the Learned Assessing Officer in framing and issuing assessment order without disposing off the objections fi....

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....eld that these discounts did not qualify section 80IB deduction since not derived from the eligible industrial undertaking. He treated the corresponding discount figure as income from other sources. 5. The CIT(A) confirms Assessing Officer's action as follows:- "7.2 SUBMISSION BY THE APPELLANT:- The appellant submitted before me that the Other Income consists of Discount received of Rs. 2,99,153/- and Exchange Rate Difference of Rs. 1,142/-. The appellant is engaged in manufacturing of specialty chemicals and has received discounts from its suppliers while purchasing raw materials and consumables. Therefore, the said Other Income reduces the purchase cost of raw materials and consumables resulting in increase of manufacturing profits and....

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....ch means there is no relation to the manufacturing activities therefore, does not qualify as having first degree nexus with the manufacturing activities during this year thereby, in my opinion, not eligible for deduction u/s. 80IB of the Act. This part in this ground of appeal is dismissed." 6. Both the parties reiterate their respective pleadings against and in support of their respective cases. There is no quarrel about the fact that the assessee received the impugned purchase discount from raw materials/consumables suppliers to the tune of Rs. 2,99,153/- as utilized in its eligible business of manufacturing of specialty chemicals whose profits are already eligible for section 80IB deduction. Both the ld. lower authorities do not rebut a....