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TMI Blog1993 (1) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... loying 10 or more workers on a regular basis, interpreted in any way. He further held that normally it had ranged between 5 to 10 depending on the workload of the appellant. He, however, allowed relief to the assessee on the ground that the assessee had been allowed the deduction under section 80-I in the first year of operation and since Single Member of this Bench had held in the case of ITO v. Mahavir Rubber Works [1983] Tax World 401, a copy of which has been filed before us that if the allowance under section 80-I had been allowed in the first year to an assessee even under section 143(1), it could not be denied in the subsequent years. We may mention here that the learned counsel for the assessee had raised some arguments regarding th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lar year includes or does not include any profits and gains derived from an industrial undertaking to which this section, namely, section 80-I applies. As per section 80-I(2) this section applies to any industrial undertaking which fulfills all the conditions given in 4 clauses of that sub-section. Clause (iv) of sub-section (2) requires that where industrial undertaking produces or manufactures articles or things, the undertaking should employ ten or more workers in a manufacturing process carried on with the aid of power. Thus, in every year whether it is the first year or the second year or third year or any subsequent year till the deductions under section 80-I are permissible, the ITO has to satisfy himself that the gross total income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nor can it be covered from the language and the scheme of the IT Act. We, therefore, hold that since in this particular case the lower authorities have held it as a fact, which fact has not been challenged before us by the assessee, that the assessee had substantially employed ten or less persons during the assessment year under consideration, merely because it had been allowed deduction under section 80-I in the first year, it cannot entitle the assessee to get that benefit if it fails to comply with the requirements given in clause (iv) of sub-section (2) of section 80-I of the IT Act in a subsequent year for which the assessment is being made. 3. Accordingly, we allow the appeal filed by the Revenue and uphold the order of the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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