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TMI Blog2006 (2) TMI 644X X X X Extracts X X X X X X X X Extracts X X X X ..... uction under section 80-IA, when he himself had given a sworn statement to the Central excise authorities that he did not have any activity of manufacture in the said premises ? 2. The facts leading to the above question of law are as under : 3. The assessee had claimed deduction under section 80-IA(2)(iv)(c) of the Income-tax Act for manufacturing cable joining kit used in the telecommunication industry at Pondicherry, which is an industrially backward area. The assessment order originally passed for the assessment year 1995-96, was set aside by the Commissioner of Income-tax (Appeals) with a clear direction to the Assessing Officer to examine the claim of the assessee with evidence in support of the return filed by him. The Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pondicherry. The Commissioner of Income- tax (Appeals) further found that even after the assessment had been set aside for the assessment year 1995-96 with a direction to examine the claim of the assessee under section 80-IA de novo, no such enquiries were made by the Assessing Officer. The Commissioner of Income-tax (Appeals) finally held that the assessee is entitled to relief under section 80-IA of the Act. 5. Aggrieved by the order of the Commissioner of Income-tax (Appeals), the Revenue filed an appeal before the Income-tax Appellate Tribunal. The Income-tax Appellate Tribunal dismissed the appeal filed by the Revenue and confirmed the order of the Commissioner of Income-tax (Appeals). Standing counsel appearing for the Revenue subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mises of the assessee and examined certain documents. Hence, we find no justification in rejecting the assessee s claim for deduction under section 80-IA merely relying on the observation of the Central excise authorities. Further, it was a factual finding by the authorities below that the machinery installed in the premises and the raw materials utilised by the assessee, suggest that there was a production of article or thing for the purpose of using the same in the telecommunication industry. When the factual finding itself is that the assessee manufactured telephone cables joining kits, the assessee is entitled for the benefit available under section 80-IA of the Act. 7. In view of the foregoing conclusions, we find no error in the or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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