9911796707
TMI Blog2013 (10) TMI 647X X X X Extracts X X X X X X X X Extracts X X X X ..... e's unit was not considered to be Small Scale Industrial unit - Report of the expert dated 14-6-2007 giving the valuation report of the machinery, equipment/ tools and tackles was not filed by the assessee before the AO and that the contents of the expert's report go to the root of the issue of disallowance made under Section 80IB that whether the assessee was a small scale industrial undertaking, and accordingly, it shall be in the interest of the justice to restore the issue to the file of the AO with direction to decide the same afresh in accordance with law after providing adequate opportunity of being heard to the assessee – Decided in favor of Assessee for statistical purpose. - I.T. A. Nos. 3052 & 3053 /AHD/2010 - - - Dated:- 11-10- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts and in the circumstances of the case and in law, the Ld. A.O. erred in disallowing and the Ld. Commissioner of Income Tax (Appeals)- I erred in confirming the disallowance of deduction u/s. 80IB of the Act amounting to Rs. 14,98,683/-. 5. During the course of assessment proceedings, A.O. noticed that the Assessee had claimed deduction under 80IB in respect of its unit claiming it to be small scale industry. A.O. further noticed that as per the Balance Sheet of the Assessee, the gross block of plant and machinery was Rs. 1.55 crores. He was of the view that as per the definition of Industrial Development and Regulation Act, 1951, a unit can be considered to be Small Scale Industrial Undertaking only if the investments in plant a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machines are classified under plant and machineries whereas drilling machines, generator, hydraulic jack and angle grinders are classified as tools and tackles. The angle grinders, drilling machines and hydraulic jack are nothing but machineries and it appears that the appellant has arbitrarily classified machinery items into plants, tools tackles to fall within the SSI limit and there is no scientific basis or justification for such representation of plant and machinery or details. Even if the contention of the appellant that for AY 04-05 the hydraulic jacks were purchased actually in lots and not a single machine is accepted, there are large number of other items such as hydraulic power pack, drill machine, paper machine, angle grinders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the parties. In the facts of the case, we are of the considered view that since the report of the expert dated 14-6-2007 giving the valuation report of the machinery, equipment/ tools and tackles was not filed by the assessee before the AO and that the contents of the expert's report go to the root of the issue of disallowance made under Section 80IB that whether the assessee was a small scale industrial undertaking, and accordingly, it shall be in the interest of the justice to restore the issue to the file of the AO with direction to decide the same afresh in accordance with law after providing adequate opportunity of being heard to the assessee. We direct accordingly. 10. Before us, since the Assessee has submitted that the facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
