9911796707
TMI Blog2007 (2) TMI 116X X X X Extracts X X X X X X X X Extracts X X X X ..... rubberised cork sheets since 2 nd January, 1992. For assessment year 2001-02, in respect of its profit from industrial concern, the deduction was claimed under Section 80-IA @30% of its profit. The Assessing Officer declined the Assessee's claim holding that the items manufactured by the Assessee comes under Eleventh Schedule at Sl.No.27 and 28, and these items are of packaging and fittings. The contention of the Assessee that the Department has allowed deduction in respect of the same very product in assessment year 1998-1999 was declined on the plea that every assessment year is a separate assessment year, therefore, the contention of Assessee was not found acceptable. 3. The Commissioner of Income Tax(A) confirmed the order of Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rule of consistency which applies to the Income Tax proceedings has to be followed. 5. Being dissatisfied with the order of the Tribunal, the present appeal has been filed by the Revenue on the grounds that the Assessee is not entitled to benefit under Section 80-IA of the Act since the Assessee is engaged in the production of articles/goods mentioned in the negative list/Eleventh Schedule of serial No.27 and 28 and the benefit of deduction is allowed to small scale units only when they begin to manufacture goods during the period for which the benefit is available and as the Assessee started manufacturing the said goods only from 2 nd January, 1992, i.e., before benefit was allowable to such small scale units, hence the case of Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce it started production much prior to the provisions of Section 80-IB having come into force. In this case the Assessee is entitled for deduction for ten years from the date of start of its production, which was 2.1.92. The year under consideration is AY 2001-02, which is very well within the period of 10 years from the first year from which the Assessee is entitled for deduction u/s 80-IA. We are, therefore, inclined to reverse the finding and conclusion of the lower authorities for allowing deduction to the Assessee u/s 80-IA, notwithstanding the fact that product manufactured by the Assessee was coming under Eleventh Schedule. 9. By virtue of the Finance Act, 1992, amendment has been made in Section 80-IA of the Act and these amendm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eady in existence; (ii) it is not formed by the transfer to a new business of machinery or plant previously used for any purpose; (iii) it manufactures or produces any article or thing, not being any article or thing specified in the list in the Eleventh Schedule, or operates one or more cold storage plant or plants, in any part of India, and begins to manufacture or produce articles or things or to operate such plant or plants, at any time within the period of (fourteen years) next following the 31st day of March, 1981, or such further period as the Central Government may, by notification in the Official Gazette, specify with reference to any particular industrial undertaking; (iv) in a case where the industrial undertaking manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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