TaxTMI 
TaxTMI 
2019 (2) TMI 322
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....lowance and granted the benefit. The ITAT by the impugned order reversed the Commissioner's decision. In the return of income for Assessment Year 2008-09, which was subject to scrutiny, the assessee declared Rs.1,62,82,400/-. It claimed deduction of Rs.3,13,09,690/- from its gross total income under Section 80-IC stating that a new industrial unit at Selaqui, Uttrakhand had started during the assessment year. The assessee manufactured roof mounted air conditioner units for the Indian Railways. Till 2007-2008, this activity was carried out at Kala Amb, Himachal Pradesh. The Kala Amb unit enjoyed the Section 80-IC benefit which had ended sometime in 2005. The assessee during the scrutiny claimed that it had purchased 3 Ton Cap Wire Rope Hoist....
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....he lease deed, the balance sheet for the period 31.03.2008, and further noted that the plant and machinery in the Selaqui unit as on 31.03.2008 was declared to be of value of Rs.3,50,353/- as against which, the turnover reported was in excess of Rs.11.3 crores. The ITAT further noted that the assessee had claimed that it purchased machinery from M/s Grip Engineers Pvt. Ltd., Ballabhgarh and ABB, Faridabad but stored it at Kala Amb unit for want of space and nonavailability of Transit Form issued by the Government of Uttrakhand. The ITAT disbelieved this explanation. Some of the material parts of the ITAT's findings are as follows: "19. Moreover, when this fact is examined in the light of the fact that no travelling allowance has been....
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....ele-fax and internet facility is proved to have been established at Selaqui unit. So we are of the considered view that new plant and machinery, even if assumed to be transferred by the assessee from Kala Amb unit to Selaqui unit, it was never put to use to carry out the manufacturing activities to qualify for exemption u/s 80-IC. 21. Furthermore, when we examine the factum of non-availability of the machinery at Selaqui unit in the light of the fact that no manpower was engaged by the assesee to carry out the manufacturing activities at Selaqui unit, the entire assessee‟s case to claim exemption u/s 80-IC goes flat. Perusal of the P&L account statement, available at page 147 of the supplementary paper book, shows that the expenditu....
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....tivity could not be disputed and furthermore, that the work did not entail labour intensive activity but was rather capable of being performed by very few workmen. Learned counsel also submitted that the ITAT could not have doubted the high turnover reported. It was further urged that for the later years, the Revenue Authorities had accepted higher losses even though the value of machinery reported to have been purchased was over Rs.30 lakhs. 4. This Court has carefully examined the orders of the Appellate Commissioner and the ITAT. Undoubtedly, the CIT(A) reversed the AO's opinion. We note further that in the 17-page order of the CIT(A), more than 14 pages were devoted to recording the assessee's contentions; the Appellate Commissioner th....
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....conditioners. The appellant has placed on record copy of its correspondence with the Central Excise Division, Dehradun, Uttrakhand, regarding exercise of option of exemption from excise duty for the new industrial unit at Selaqui, including its undertaking to apply for Central Excise Registration as soon as the goods mentioned become chargeable to duty. The appellant has also relied o n a number of judgments dealing with the question of the process of manufacture to argue that even manufacture of a „part‟ is manufacture so long as that part is duitable as a separate part. The appellant has furnished a copy of the order of the Customs, Excise and Service Tax Appellate Tribunal in the case of the appellant, reported at 156 E....
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....ising one Wire Rope Hoist Machine and one Hydraulic Pallet Machine were temporarily kept at the Kala Amb Unit as the transit form was unavailable. The appellant has stated that the Wire Rope Hoist Machine, purchased from M/s Grip Engineers, Faridabad, was transported by the appellant‟s own truck along with 21 electric Motors purchased from ABB Ltd., Faridabad, in the interest of economy. The appellant has filed evidence that the machinery was stored at the Kala Amb stores for a total period of 14 days from 23.5.2007 to 7.6.2007 and the said machinery was never used before its installation at Selaqui. It is also shown that the Kala Amb Unit already had a Chain Hoist Machine and there was no need to purchase or install another machine a....