2018 (4) TMI 2017

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....,66,574/- made by the AO on account of disallowance of claim of deduction u/s. 80IC as the Ld. CIT(A) has not appreciated the facts explained in the assessment order passed by the AO that the assessee is eligible for deduction u/s. 80IC only with respect to articles or things manufactured in its specified industrial unit and not in respect of job work done outside the specified unit." 3. The brief facts of the case are that the assessee filed its e-return of income on 30.9.2011 at Rs. 1,40,29,660/-, claiming therein deduction of Rs. 74,04,479/- under section 80IC of the Income Tax Act, 1961. The case was picked up for scrutiny and a statutory notice u/s. 143(2) of the I.T. Act was issued on 11.9.2012 and thereafter a notice u/s. 142(1) a....

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....n derived from the industrial activity of the assessee's eligible unit, yet the same cannot be considered as `income received for articles or things manufactured or produced in its eligible unit.", hence, the addition in dispute was rightly made by the AO, which does not need any interference. 5. On the other hand, Ld. A.R. of the assessee relied upon the order of the ld. CIT(A) and stated that he has passed a well reasoned order which does not need any interference. During the hearing, Ld. Counsel of the assessee has filed the copies of the assessment orders for the assessment years 2012-13, 2013-14 & 2014-15 in assessee's own case wherein the deduction u/s. 80IC was allowed as well as decision of the ITAT, 'H' Bench, Ne....

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....hich a different commodity having distinct name, use and character emerges from the raw material. Therefore, it cannot be denied that the assessee received job work charges from the manufacturing process through which a new product has emerged from the raw material supplied by its customers. We find considerable cogency in the contention raised by the ld. Counsel of the assessee that the AO in the assessment years 2012-13, 2013- 14 & 2014-15 in assessee's own case has allowed the deduction under Chapter VIA u/s. 80-IC and also the ITAT, 'H' Bench, New Delhi vide its order dated 27.3.2015 passed in the case of ITO vs. Zeon Lifessciences Ltd. for the assessment year 2006-07 held that the assessee job work charges have to be treate....