TaxTMI 
TaxTMI 
2021 (4) TMI 858
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....t]. In the grounds of appeal, the Revenue has raised the following grounds: "1. The order of the learned Commissioner of Income Tax (Appeals) is erroneous on facts of the case and in law. 2. The ld. CIT(A) failed to note that the assessee had only shifted a part of the industrial undertaking and not as whole. 3. The ld. CIT(A) failed to consider that in the case of the assessee, purchase of another land in non-urban areas can also be not treated as shifting of the industrial undertaking as provided under the Act. 4. For these grounds and any other ground including amendment of grounds that may be raised during the course of the appeal proceedings, the order of learned CIT(Appeals) may be set aside and tha....
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.... per the provisions of section 54G of the Act. 5. Against the penalty order under section 271(1)(c) of the Act, the assessee preferred an appeal before the ld. CIT(A). After considering the submissions of the assessee, the ld. CIT(A) held that the penalty levied under section 271(1)(c) of the Act is not sustainable since the quantum addition was deleted by the ITAT vide its order in I.T.A. No. 1619/Chny/2017 dated 26.06.2018. 6. Aggrieved, the Revenue is in appeal before the Tribunal against deletion of penalty levied under section 271(1)(c) of the Act. 7. We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. Against the deletion of quantum addition vide order in I....
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....017, the assessee preferred an appeal before the Tribunal. After considering the provisions of Section 54G(1) of the Act, the Tribunal took note of the business activities of the assessee and the meaning assigned to the expression 'industrial undertaking' and held that the interpretation to be given should be in such a manner that it promotes economic growth and development and it should aid an industry. Keeping the said principle in mind, the Tribunal considered the facts of the assessee's case, noted that the assessee shifted its godown storing hazardous products to a non urban area and that the activity carried on in the godown being storage and repacking, which is severable from the other activities of the industrial establi....
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....or retail sale would undoubtedly fall within the meaning of the word 'manufacture'. In terms of Rule 71 of the Explosives Rules, 2008, a person holding licence for possession of explosives granted under these Rules shall store the explosives only in the premises specified in the licence. Thus, possession, usage and sale of explosives are strictly regulated under the provisions of the Explosives Act and the relevant Rules framed thereunder. 11. Unfortunately, the Assessing Officer did not take note of this vital factor, but was guided by the common parlance test given to an industrial undertaking. One more factor, which the Assessing Officer lost sight of, was the manner, in which, the first limb of Section 54G(1) of the Act....