9911796707
TMI Blog2006 (12) TMI 405X X X X Extracts X X X X X X X X Extracts X X X X ..... total number of employees joined during both the assessment years, number of employees without supervisory roles, workmen joined, number of supervisors joined and workmen joined and relieved during the years under consideration. A cursory perusal of this list shows that the assessee had claimed deduction in respect of employees, who had joined as engineers in their respective field such as systems engineer, test engineer, software design engineer, IC design engineer, lead engineer etc. A cursory perusal of those lists establishes that the assessee had claimed deduction in respect of the engineers employed not in the category of supervisory control. Further, from the order of the CIT(A), it is seen that he had taken note of the notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the assessment proceedings. In the first appellate proceedings, the CIT(A) granted relief to the assessee. The assessee had claimed a deduction of Rs. 2,55,81,220 under section 80JJAA for the assessment year 2001-02 and a sum of Rs. 4,78,05,176 for the assessment year 2002-03. The claim of the assessee was not accepted by the Assessing Officer. However, the CIT(A) granted relief to the assessee. 3. The learned CIT-Departmental Representative Mrs. Swathi S. Patil vehemently contended that the software engineer drawing a salary of Rs. 50,000 per month and more is treated as a workman whereas an office superintendent drawing a salary of Rs. 1,700 per month is excluded from the meaning and scope of section 2(s) of the Industrial Disputes Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that of the Assessing Officer has to be restored. 4. On the other hand, the learned counsel for the assessee submitted that the assessee company is engaged in development, design and manufacture of software. In respect of salary paid to the new employees the claim for deduction under section 80JJAA was made. The learned counsel for the assessee submitted that section 80JJAA was introduced by the Finance Act, 1998 with effect from 1-4-1999. He further submitted that the section was introduced to encourage employers to generate more employment opportunities. Learned counsel further submitted that before claiming the deduction under section 80JJAA to the extent of 30 per cent of additional wages the assessee should fulfil the following cond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 10(15) and 10A of the Income-tax Act. He also placed reliance on the decision of the Karnataka High Court in the case of CIT v. Datacons (P.) Ltd. [1985] 155 ITR 66 to support the preposition that the assessee is a manufacturer of goods. He further contended that any person employed in any nature to do any manufacturing, skilled, unskilled, technical, operational, clerical or supervisory work would be 'workmen'. He further pointed out that the persons employed by the assessee as software engineers involve skill and technical work which will fall in the category of workmen. He further argued that workmen salary may exceed Rs. 1,600 per month and still the undertaking would be eligible for deduction under section 80JJAA of the Income-tax Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he new workmen employed during the year ended 31-3-2000 relevant to the assessment year 2000-01. As there was no claim for relief under section 80JJAA for the assessment year 2000-01, the relief in respect of the workers employed in assessment year 2000-01 cannot be considered for relief under section 80JJAA in the assessment year 2001-02. As such the appellant will be entitled for relief under section 80JJAA of Rs. 1,09,52,012 being 30 per cent of the additional wages of Rs. 3,65,06,707 (Rs. 8,52,70,736 - Rs. 4,87,64,029) in respect of the new workmen employed during the previous year relevant to the assessment year 2001-02. Similarly, for assessment year 2002-03 the appellant has claimed deduction of Rs. 4,78,05,176 being 30 per cent of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... without supervisory roles, workmen joined, number of supervisors joined and workmen joined and relieved during the years under consideration. A cursory perusal of this list shows that the assessee had claimed deduction in respect of employees, who had joined as engineers in their respective field such as systems engineer, test engineer, software design engineer, IC design engineer, lead engineer etc. A cursory perusal of those lists establishes that the assessee had claimed deduction in respect of the engineers employed not in the category of supervisory control. All these details were filed before the Assessing Officer during assessment proceedings. These facts were not properly considered by the Assessing Officer. Further, from the order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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