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TMI Blog2015 (2) TMI 502X X X X Extracts X X X X X X X X Extracts X X X X ..... he manner of doing the work. Thus, these contract persons will have to be counted for the purpose of Section 80-IA(2)(v). When it is so, then the assessee will get the benefit of deduction under Section 80IA of the Act for the assessment year under consideration. - Decided in favour of assessee. Disallowance of Staff Welfare Expenditure - Tribunal has sustained disallowance of ₹ 5,000/- out of of ₹ 16,885/- on estimate basis and given the relief of the balance amount - Held that:- Order of the Tribunal is hereby sustained to the extent it disallowed the amount of ₹ 5,000/- as relying on New Plaza Restaurant Vs. I.T.O. [2008 (7) TMI 260 - HIMACHAL PRADESH HIGH COURT], Sajay Oil Cake Vs. C.I.T. [2008 (3) TMI 323 - GUJARAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sai Computer Consultancy. M/s Sai Electricals was engaged in the manufacturing and sale of transformers, electricals goods, job work etc. On the other hand, M/s. Sai Computer Consultancy was engaged in the process of data feeding, accounts, reports, data processing etc. It has three sub units at Meerut, Lucknow and Ludhiana. During the assessment year under consideration, the assessee has claimed the deduction under Section 80-IA in respect of M/s. Sai Electricals as well as M/s. Sai Computer Consultancy, Lucknow unit. But the same was denied by all the lower authorities and confirmed the deduction of ₹ 1,43,620/- on the ground that the total number of employees was less than ten as per Section 80-IA(10) of the Act. Being aggrieved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scribed as contractors and were not counted as the employees of the assessee in terms of Section 80IA (2)(v), so the deduction was disallowed. It may be mentioned in the case of CIT vs. V.B. Narania Co. (2001) 252 ITR 884 (Guj), it was observed that the persons doing the work on contract basis will have to be counted for the purpose of Section 80-IA (2)(v) for the reason that the assessee was controlling not only the work to be done by these persons, but also the manner of doing the work. Similarly, in the case of CIT vs. Prihviraj Bhoorchand (2006) 280 ITR 94 (Guj.), it was held that the workers are engaged on contract labour basis can be said that the industrial undertaking of the assessee employs twenty or more workers in the man ..... X X X X Extracts X X X X X X X X Extracts X X X X
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