9911796707
TMI Blog2012 (12) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... milar factual position is verified with other assessment years - AO is accordingly directed to allow the claim u/s 80I X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee company transferred machinery worth Rs.2,53,891/- from Bombay to Ahmedabad during the PY. relevant to A.Y. 1986-87, vide company's letter dated 29.11.88. From the assessment records, it was noticed that assessee company had made additions to plant and machinery/building at Vatva from A.Y.19S5-86 and onwards fro the expansion of his business activities. Prom the above, it was very clear that the assessee company had shifted its existing production unit from Andheri to Vatva In A.Y. 1985-86. Thus, there was no new unit was in existence at Vatva, but it was only shifting of existing unit from one place to another place i.e. from Andheri to Vatva. In the instant case, the assessee company started its productions during the PY, relevant to A.Y. 1982-82, i.e. an industrial undertaking was established and started production activities before 31.3.81. Hence, the condition stipulated u/s 80I was not satisfied. In view of the facts discussed above, ft is clear that the assessee has not fulfilled conditions No.(i) and (ii) of sub-section (2) of Section 801. From the facts and circumstances of the case, it is held that deduction u/s 801 was wrongly allowed. This deduction is wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, in principle the company decided to give the manufacturing of various parties on job work basis. This parts were designed by the R & D department of the company and drawings fro which had been issued by the department of the company. Major parts which were manufactured on job work basis at various industries were brought to the stores of this company and balance parts were purchased outright from the local market. After receiving various parts the assembling activity was carried out at the above said premises......" 5. From the report of the expert chartered engineer extracted above, it is clear that the assessee has done major part of manufacturing on job work basis. The assessee has simply done the assembling work of the machines manufactured by others on job work basis. Therefore, it cannot be said that the manufacturing of the machines were done by the assessee, which is very clear from the report of the chartered engineer. Moreover, as per the details of the machinery attached along with the report of the chartered engineer, the machinery's which assessee had were all second hand machinery's which would disentitled the assessee's claim for deduction u/s 80I. 6 It is releva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machinery was fabricated at Vatwa, Ahmedabad after getting various components or parts either partly procured than or after getting the sane manufactured from local manufactures and thereafter the machine model No. Tarpat CL 45-75 which is a Circular Loom was manufactured during the relevant years. It is stated that the machinery transferred from Mumbai could not have been used for manufacture / fabrication of Circular Looks at Ahmedabad. As a matter of fact, it is found that the old machinery was disposed of in accounting year 1988-87. A copy of computation of income for A.Y. 86-87 showing profit on sale of machinery of Rs.197,987/- which is part of total income of Rs.588,382 has also been submitted in the paper book at page No.4 thereof. The same are verified with reference to various Schedules of P & L account etc. for the relevant year and the contention of the assessee in this respect is therefore, found to be correct. After considering the submissions made by the assessee's representative having reference to the case has cited, I am inclined to hold that deduction u/s 80I cannot be denied if an assessee get the machinery manufactured or fabricated from outsiders and thereaft ..... X X X X Extracts X X X X X X X X Extracts X X X X
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