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2022 (12) TMI 1315
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....AY.2009-10 (v) ITA No.327/SRT/2018 for AY.2011-12 3. Since, the common and identical issues are involved therefore these appeals have been clubbed and heard together and a consolidated order is being passed for the sake of convenience and brevity. The facts as well as grounds of appeal raised by the assessee in ITA No. 323/SRT/2018 for AY.2005-06, have been taken into consideration for deciding these appeals en masse. 4. The grounds of appeal raised by the assessee as per lead case in ITA No. 323/SRT/2018 for AY.2005-06 are as follows: "01. The order of assessment is contrary to the facts and prejudicial to the appellant. 02. 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 of not granting deduction to the appellant U/s 80IB of the Income tax Act 03. On appreciation of the facts and circumstances of the case and interpretation of law, the Learned Commissioner of Income Tax (Appeals) has erred in confirming the action of the Learned Assessing Officer in treating the income earned by the appellant as income not eligib....
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....sessing Officer, the assesse carried the matter in appeal before the ld. CIT(A) who has confirmed the action of Assessing Officer. The Ld. CIT(A) called remand report from Assessing Officer and after taking into consideration the assessee's submission, held that assessee is not carried out any manufacturing activity, therefore assessee's claim for deduction under section 80IB of the Act, was rejected. 8. Aggrieved by the order of the ld. CIT(A), the assessee is in appeal before us. 9. The Learned Counsel for the assessee submitted that the issue under consideration is squarely covered by the judgment of Co-ordinate Bench of ITAT, Surat in the assessees' own case in ITA No.322/SRT/2018 for AY.2004-05, order dated 04.08.2022, therefore assessee's claim for deduction under section 80IB may be allowed. 10. On the other hand, the Ld. DR for the Revenue has primarily reiterated the stand taken by the Assessing Officer, which we have already noted in our earlier para and is not being repeated for the sake of brevity. 11. We find merit in the submission of Ld. Counsel for the assessee and noted that issue under consideration is squarely covered in favour of assessee in assessee....
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....urse of assessment proceedings and has been duly verified. The observations made by ld CIT(A) are general in nature. The assessee had submitted Permanent Certificate of Registration as an SSI unit obtained from DIG, Daman specifying the date of commencement of production as 02.03.2004, vide Paper Book Page 24 to 39.The Assessee's manufacturing activity consisted of (i) canvassing of orders, (ii) preparation of specifications of the material to be supplied to Formula Cables and electrical on the basis of orders, (iii) placing orders for the manufacture of rubber cables with Nangalwala chemicals Ind. (iv) to ensure that the manufacturing process is carried on by Nangalwala chemicals, under the direct supervision of the Partner Mr. Naresh Agarwal, the Partner and (v) to have a check over the quality control of Cables manufactured and assuring that the end products conform to specification as per customers order giving performance and guarantee to the customer. Further the Payment of cable making charges Rs. 46,518/- Paid to Nagalwal Chemical has been debited to Profit and Loss Account, vide Page 79 of the Paper Book. We note that decision of the Honorable Bombay high Court in the ....
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.... sale service for a stipulated period. Out of so many activities, except for one activity, namely, getting the machinery manufactured through Turner Hoare, all other activities are admittedly undertaken by the assessee-company. In the circumstances, we find no difficulty in agreeing with the Tribunal that the assessee is engaged in the business of manufacture sugar and tea machinery and is accordingly qualified for relief under section 80-I. In the above view of the matter, we answer the 3rd and the 4th question is also in the affirmative and in favour of the assessee. 8. There would be no order as to costs." 12. On the identical facts, our view is fortified by the judgment of the Hon'ble Bombay high Court in the case of Anglo French Drug Co. (Eastern) Ltd reported in [1991] 57 TAXMAN 008 (BOM) wherein pursuant to Circular No. 347 issued by CBDT the Hon`ble Bombay High Court has clearly held that manufacturing at third party premises using their machinery under the supervision and control of an assessee amounts to manufacturing by the industrial undertaking. While holding as such the honorable court followed its own decision in the case of CIT v. Neo Pharma (P....
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....e wages of the workers employed in the manufacturing process. We have considered the factual data in this case in the light of the judgment or our High Court in Neo Pharma (P.) Ltd.'s (supra) and we are of the view that the Tribunal was right in the view which it took. In the result, we answer both the questions in the affirmative and in favour of the assessee." 13. From the above judgment of the Hon`ble Bombay High Court in the case of Anglo French Drug Co. (Eastern) Ltd(supra), it is abundantly clear that it is not necessary that the manufacturing company must manufacture the goods by its own plant and machinery at its own factory. If in substance the manufacturing company has employed another company for getting the goods manufactured by it under its own supervision or control, the assessee can be considered as a company engaged in manufacture of goods and, thus, an industrial company. Therefore, we note that in the assessee`s case under consideration, assessee received orders from customers to supply the goods to them and the assessee executed these orders by way of manufacturing done by M/s Nangalwala Chemical Industries of Alwar, under the direct supervision of o....
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....nder section 271(1)(c) of the Act, based on the defective notice of penalty. The additional grounds raised by the assessee in respect of penalty proceedings, is reproduced below: "1. On appreciation of the facts and circumstances of the case and law, the Learned Commissioner of Income Tax (Appeals) has erred in confirming the action of the learned assessing officer in initiating the penalty proceedings U/s. 271(1)(c) of the Act for furnishing inaccurate particulars/concealment of income without mentioning the specific limb for which penalty is proposed to be levied. By way of the above additional ground of appeal the appellant has raised purely a legal issue and facts are available on record. The same may kindly be adjudicated on merits in view of the discretion conferred on your Honours under Rule 11 of the Income-tax (Appellate Tribunal) Rules, 1963." 16. We have heard both the parties and perused the material available on record. We note that since we have deleted the quantum addition made by the Assessing Officer for assessment year 2007-08, therefore penalty under section 271(1)(c) of the Act for AY.2007-08, does not survive. That is once the foundation fails, the ....
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....005-06, order dated 31.10.2013 has directed the ld. CIT(A) to adjudicate the issue afresh. The direction given by the Tribunal is reproduced below: "6. Ground No.5 is against confirmation of addition made by the AO to the tune of Rs.14 lacs out of unsecured loan taken from M/s.National Minerals and M/s.Akshat Leasing & Hire Purchase Pvt.Ltd. Ld.counsel for the assessee submitted that the relevant details were submitted before the ld.CIT(A). He submitted that copies of confirmation of the concerned parties are enclosed with the paper-book at page Nos.164 to 166. On the contrary, ld.Sr.DR supported the orders of the authorities below on this issue. 7. We have considered the rival submissions, perused the material available on record and gone through the orders of the authorities below. Ld.CIT(A) in his order has decided this issue vide paragraph Nos.7.2 & 7.3, the same are reproduced for the sake of clarity. "7.2. Findings: I have considered the submissions made by the appellant and have gone through the remand report of the AO. The appellant submitted before me that it's then A.R.has been hospitalized owing to a severe heart attack and he could not attend ....