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TMI Blog2010 (9) TMI 836X X X X Extracts X X X X X X X X Extracts X X X X ..... s received by the assessee on account of job-work done for others was held to be on account of business of the industrial undertaking of the assessee, more particularly in view of the decision of CIT v. Impel Forge and Allied Industries Limited [2008 (12) TMI 370 - PUNJAB & HARYANA HIGH COURT]. Tribunal had recorded that the expenditure incurred on repair which included the cost to be replaced against which insurance was claimed, the only excess income, if any, can be disallowed. Thus the assessee had not received any real income on account of insurance claim which could be disallowed. The said finding has not been shown to be erroneous or perverse which may warrant interference by this court - no substantial question of law arises which re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment order ? (iv) Whether, on the facts and in law, the hon'ble Income-tax Appellate Tribunal was justified in viewing that the expenditure incurred on repair which included the cost to be replaced against which insurance was claimed, the only excess amount, if any, can only be disallowed ignoring the fact that the insurance claim receipts has no nexus with the business of the industrial undertaking and is not eligible for deduction under section 80-IB ? (v) Whether, on the facts and in law, the hon'ble Income-tax Appellate Tribunal was justified in the assessee's case restricting its decision to the justification of the jurisdiction assumed under section 263 of the Act and not deciding the issue on the merits of the case ?" Brief ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 80-IB as the same had no nexus with the business of the industrial undertaking. The respondent-assessee being aggrieved against the order of the Commissioner of Income-tax passed under section 263 of the Act invoked the appellate jurisdiction of the Tribunal. The Tribunal allowed the appeal of the assessee observing that the fabrication charges on account of job-work done by the assessee for others amounted to manufacturing and also that the assessee had not received any real income on account of insurance claim which could be disallowed. The Tribunal, thus, concluded that the order of the Commissioner of Income-tax passed under section 263 of the Act was unsustainable as the assessment order dated December 15, 2006, passed by the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are denied still no prejudice is caused because still there is a negative figure if the impugned amount is denied because ultimately nothing is to be disallowed. We are of the view, that the expenditure incurred on repair which included the cost to be replaced against which insurance was claimed, the only excess income, if any, can only be disallowed and if there is any real income from the insurance company, can only be disallowed. For this proposition, the assessee is fortified by the decision in the case of CIT v. G. K. Steel Tubes Pvt. Ltd. [2005] 27 IT Rep 349 (P&H). Even otherwise, in principle, the learned Commissioner of Income-tax himself agrees that the assessee is doing the activity of manufacturing. The learned Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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