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TMI Blog2014 (1) TMI 952X X X X Extracts X X X X X X X X Extracts X X X X ..... product which the AO has not agreed with, however in the order no such discussion let alone finding has been arrived at by the CIT(A) - the order set aside and the matter remitted back to the CIT(A) – Decided in favour of Revenue. - I.T.A. No. 2957/Del/2012 - - - Dated:- 19-7-2013 - Diva Singh And T.S. Kapoor, JJ. For the Appellant : Shamuna Sen, DR For the Respondent : M.P. Rastogi, Adv. and P.N. Shastry, CA ORDER:- PER : Diva Singh This is an appeal filed by the revenue against the order dated 29.02.2012 of CIT(A)-XXIII, New Delhi pertaining to 2008-09 assessment year on the following grounds:- "1. On the facts and on circumstances of the case, the Ld. CIT(A) has erred in allowing the deduction claimed u/s 80I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The AO required the assessee to explain the same. Considering the reply of the assessee which is set out at pages 3and4 of the assessment order, the AO at page 5 concluded that the job work done by the assessee was a mere service in nature which is provided to M/s Interarch Building Products (P) Ltd. The assessee received raw-material from the said party and manufactured the goods as per the design and specifications required by them. The said party had deducted taxes applicable to a contractor on payments made to the assessee which proves that the assessee was a contractor for the above party. He further took note of the fact that the goods manufactured by the assessee on account of job work was different from its own product and it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iii). CIT vs Tamil Nadu Heat Treatment and Fetting Services Ltd. (1999) 238 ITR 540 (Mad.); and iv). CIT vs Northern Aromatics Ltd. (2005) 196 CTR 479 (Del) and CIT vs Impel Forge and Allied Industries Ltd. (2010) 326 ITR 27 (P and H)." 4. Referring to the judgement of the Jurisdictional High Court, it was submitted that in case of CIT vs Sadhu Forgin Ltd. (2011) 336 ITR 444(Delhi High Court), the Hon'ble High Court answering in favour of the assessee. The questions raised by the department came to the following conclusions:- "The jurisdictional High Court of Delhi has vide orders dated 9 and 13 May 2011 in the case of CIT vs Sadhu Forging Ltd. - in ITA Nos 167 and 351/2011 has answered in favour of the assessee the question rai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered the above submissions and perused the assessment year. I have also gone through the case laws cited by the appellant and the Assessing Officer. SO far as the judgement relied upon the Assessing Officer is concerned, the ruling of the Apex Court in the case of Liberty India (2009) 317 ITR 218 was that profits derived by way of such incentives as DEPB and Duty Drawback are not profits derived from the eligible business within the meaning of section 80IB. Export incentives are not "profits derived from industrial undertaking" and hence not eligible for deduction for the purposes of section 80IA or 80IB. After careful consideration, I am unable to subscribe to the view of the Assessing Officer that profits derived from job-work rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned job-work charges were part and parcel of the manufacturing process of the industrial undertaking. These receipts could not be said to be independent of the manufacturing activities of the undertaking, and thus could not be excluded from the profits and gains derived from the industrial undertaking for the purpose of computing deduction under section 80IC." 6. Aggrieved by this, the department is in appeal before the Tribunal. 7. At the time of hearing, Ld. AR filed a paper book and stated that the issue is fully covered by the judgement of the Jurisdictional High Court in the case of CIT vs Sadhu Forging Ltd. (2011) 336 ITR 444(Del.). Since it is the appeal of the department, it was adjourned on the oral request of the Sr. DR so ..... X X X X Extracts X X X X X X X X Extracts X X X X
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