9911796707
TMI Blog1990 (9) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... stered partnership firm, is engaged in the manufacture/production of rice and for the industry as such deduction is admissible. The only dispute is whether required number of labourers were working in the manufacturing concern of the assessee. For the assessment year 1979-80 when the assessee's claim was not allowed by the ITO, the matter came before the AAC. The AAC allowed the assessee's claim for that year. Then the Revenue came before the Tribunal. The Tribunal set aside the matter to the file of the AAC with a direction to him to readjudicate the issue of allowability of deduction under sections 80HH and 80J after hearing the assessee and the Assessing Officer. The AAC in set aside proceedings for assessment year 1979-80 and in first a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... done by the AAC as the details were not filed. He submitted that in light of decisions in CIT v. Sawyer's Asia Ltd. [1980] 122 ITR 259 (Bom.) ; CIT v. Ormerods (I.) (P.) Ltd. [1989] 176 ITR 470/42 Taxman 81 (Bom.) and CIT v. Harit Synthetic Fabrics (P.) Ltd. [1986] 162 ITR 640/26 Taxman 540 (Bom.), assessee's claim deserves to be allowed. He submitted, so far assessee's claim on merit that manufacturing of rice is an industry and assessee is an industrial undertaking is concerned, it is supported by the decision of the Tribunal in Bangaru Manikayant v. ITO [1987] 21 ITD 329 (Hyd.). 4. The learned D.R. mainly relied on the order of the lower authorities and submitted that the assessee is not registered as factory. 5. After taking into co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly. There may be another case in which the number of workers engaged in the manufacturing process is ten or more substantially throughout the period for which relief is claimed. In these two cases, it is fairly easy to determine whetheror not the assessee is entitled to relief under section 84 (provided other requirements are satisfied). In the former case, it is clear that the condition prescribed by section 84(2)(iv) has not been complied with and the assessee must be denied relief. In the latter case, however, in the absence of the words ' throughout the year ' the assessee must be deemed to have substantially complied with the requirement of section 84(2)(iv) and cannot be denied relief merely because on a few occasions in the relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hips in the said case came to observe that it is enough if the undertaking employes ten or more labourers substantially during the period in which the relief has been claimed. There cannot be any hard and fast rule by which it can be determined whether there has been substantial compliance. 5.1 AgainBombayHigh Court in case of Ormerods (I.)(P.) Ltd. had occasion to deal with identical issue and applied Harit Synthetic Fabrics (P.) Ltd.'s case and Sawyer's Asia Ltd.'s case and while accepting assessee's claim in the said case made the following observation : " Where the Tribunal found that though the number of workers at a certain period was reduced to six, on an average there had been 10 workers employed in the undertaking and this was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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