9911796707
TMI Blog2014 (1) TMI 911X X X X Extracts X X X X X X X X Extracts X X X X ..... an. Assessee electronically filed its return of income on 15.09.2009 declaring total income of Rs. 34,25,570/-. The case was selected for scrutiny and thereafter the assessment was framed under Section 143(3) vide order dated 12.12.2011and the total income was determined at Rs. 45,66,670/-. Aggrieved by the order of Assessing Officer, Assessee carried the matter before CIT(A). CIT(A) vide order dated 30.07.2012 allowed the appeal of the assessee. Aggrieved by the aforesaid order of CIT(A) Revenue is now in appeal before us and has raised the following grounds. 1. On the facts and circumstances of the case and in law, the ld. CIT(A) has erred in allowing deduction u/s. 80 IB of the amounting to Rs. 11,41,094/- even the factory licence was w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s 80 IB and accordingly rejected the claim of deduction u/s 80 IB of the Assessee. Aggrieved by the aforesaid order of Assessing Officer, Assessee carried the matter before CIT(A). CIT(A) allowed the appeal of the Assessee by holding as under. 5.1 I have considered the observations of the AO in the assessment order as well as the contentions raised by the AR of the appellant in the written submission. The issue of allowability of deduction u/s. 80 IB of the Act is squarely covered by the decision of this office vide appellate orders in Appeal No.(i) CIT(A)/VLS/i2O/o8-O9 dated 05.01.2010, (ii) CIT(A)/VLS/288/09- 10 dated 19.07.2010 and (iii) CIT(A)/VLS/186/10-11 dated 24.06.2011 in the case of the appellant firm itself for the Asstt. Years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g factory licence is not a condition precedent for claim of deduction under 80IB of the Act is not correct. He further placed on record the decision of Hon. Gujarat High Court in case of CIT vs. Jolly Polymers 342 ITR 87. Where the Hon. High Court has held that in cases where the application for licence to set up and an Industrial undertaking was made before 31st March, 2004 but obtained shortly thereafter, then such lapse must be viewed as purely technical. He further pointed out that there is nothing on record to demonstrate as to when the application for licence was made by the Assessee and when it was received. He therefore submitted that this aspect needs examination at the end of Assessing Officer and therefore the matter be remitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Hon. Gujarat High Court, we are of the view that the date of making an application for factory licence and its date of issue needs to be examined by the Assessing Officer. We therefore remit the matter to the file of Assessing Officer and direct him to verify the issue of grant of factory licnece in view of the aforesaid decision of Hon. Gujarat High Court. Thus this Ground of the Revenue is allowed for statistical purposes. Ground No. 2 is with respect to scrap sales. 11. During the course of assessment proceedings, Assessing Officer noticed that the business income worked out for availing benefit under 80IB was inclusive of scrap income of Rs. 2,16,424/-. Assessing Officer was of the view that since the Assessee has not filed the nat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14. The learned A.R. on the other hand submitted that the scrap was generated from manufacturing activity and therefore the same was rightly considered as profit of business eligible for deduction under 80IB. He thus supported the order of CIT(A). 15. We have heard the rival submissions and perused the material on record. We find that Assessing Officer has noted that the Assessee has not filed details of the scrap generated during the year. These details have also not been filed either before CIT(A) or before us . We are therefore of the view that the matter needs to be examined at the end of Assessing Officer for verification the nature of scrap generated by Assessee. We therefore remit the matter to the file of Assessing Officer for veri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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