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TMI Blog2014 (10) TMI 826X X X X Extracts X X X X X X X X Extracts X X X X ..... challan and the despatch of the finished material from its gate register. The time required for assembly and testing of the product varies between two to six hours and the items purchased from M/s. SML are circuit card assembly which are the basic raw material for mounting of variable components based on customer requirements has also not been challenged as incorrect by placing any material/document on record by the Revenue. On the contrary, the assessee had produced positive proof that it was a manufacturing/assembling unit. Therefore, we uphold the order of the Commissioner of Income-tax (Appeals) which is in accordance with law and that no interference is called for. - Decided against revenue. - ITA No.5421/Del /2011 - - - Dated:- 10-10-2014 - SHRI GEORGE GEORGE K. AND SHRI T.S. KAPOOR, JJ. For the Appellant : Shri Vivek Nangia, Sr. D.R. For the Respondent : Shri P.K. Gaur and Shri Arjun Mehta, C.As. ORDER George George K. (Judicial Member).- 1. This appeal, at the instance of the Revenue, is directed against the order of the Commissioner of Income- tax (Appeals)-XXIII, New Delhi, dated September 20, 2011. The relevant assessment year is 2008-09. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 24, 2006. The appellant has entered into an agreement with Cewe Instruments AB, a Swedish corporation on May 2, 2006 for obtaining technical know- how, support and assistance for manufacture of products based on technology supplied by Cewe. The appellant has been allowed certificate of registration under value added tax as on September 27, 2006. The appellant has been granted no objection certificate from the Environment Protection and Pollution Control Board, Baddi, on September 4, 2006. Power connection from the State electricity Board has been provided on December 27, 2006. An inspection report of the director of fire services is on record, showing inspection on January 24, 2007. The Deputy Director, Industries, Department of Industries, Baddi, Himachal Pradesh has issued a certificate of allocation of registration number for small scale enterprise for manufacturing of transducers, meters, etc., showing date of commencement of commercial production on April 11, 2007. The appellant has also furnished copies of certification under ISO 9001 : 2000 for design, manufacturing and supply of transducers and meters and copy of approval letter dated March 24, 2008 from the Power Grid Corp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt by the Assessing Officer on December 28, 2010 to which the appellant has filed a reply on December 31, 2010. From the said reply, it is seen that the appellant explained that the time recorded on the invoice issued by M/s. SML was subsequent to the despatch of the material on the basis of challan. The appellant has correlated the entry of goods as per delivery challan and the des patch of the finished material from its gate register. It is submitted that the time required for assembly and testing of the product varies between two to six hours. It is also submitted that the items purchased from M/s. SML are circuit card assembly which are the basic raw material for mounting of variable components based on customer requirements. The appellant's products however consist of transducers and meters which are not manufactured by M/s. SML. 7. Regarding the purchase of machinery for manufacturing of the electronic products, the appellant has submitted that machinery amounting to ₹ 24,39,190 was purchased during the financial year 2006-07. Hence, the Assessing Officer's finding that manufacture could not have commenced as machinery of only ₹ 10,46,287 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . of deduction under section 80-IC of the Act. On the other hand, the learned authorised representative reiterated the submissions made before the authorities below and relied on the findings of the Commissioner of Income-tax (Appeals) on the issue. 6. We have carefully considered the rival submissions, perused the relevant material on record and also the findings of the Commissioner of Income- tax (Appeals) in reversing the stand of the Assessing Officer. The Assessing Officer had denied 50 per cent. of the deduction under section 80-IC of the Act as claimed by the assessee solely on the premise that (a) the assessee has not furnished any proof of the installation of machinery ; (b) the items purchased from SML was sold to M/s. ABB Ltd. without doing any manufacturing activity and without value addition in physical terms ; and (c) there are very few manufacturing expenses (Source : paragraph 4.5. of the assessment order). However, the reasoning of the Assessing Officer that the assessee had not furnished any proof of installation of machinery (paragraph 4.5(a)) has since been controverted, inter alia, by the Commissioner of Income-tax (Appeals) in her findings that the Deputy D ..... X X X X Extracts X X X X X X X X Extracts X X X X
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