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TMI Blog2010 (6) TMI 847X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 (by assessee) 3. Both the appeals by assessee are directed against different orders of learned CIT (A)-VIII, Ahmedabad dated 10th October, 2007 for assessment year 2002-03 and 2004- 05. In assessment year 2002-03, learned Counsel for the assessee restricted his arguments with regard to deduction claimed u/s 80 HHC and 80 IB of the IT Act with regard to scrap sales of ₹ 30,24,322/-. Rest of the grounds claiming deductions in the aforesaid sections on interest income, other income and labour charges are not pressed. These grounds are accordingly dismissed as not pressed. Similarly in assessment year 2004-05, learned Counsel for the assessee restricted his arguments with regard to deduction claimed u/s 80 HHC and 80 IB of the IT A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see in ITA No.1363/Ahd/2007 vide order dated 17-06-2008 restored the matter back to the file of the A O to verify whether the scrap sales is generated as bye-product of the assessee s manufacturing process and allow the same in the light of decision of the Special Bench in the case of Nirma Industries Ltd. (supra). Copy of the order is filed (PB -104 108). Learned Counsel for assessee, therefore, submitted that since the leaned CIT (A) followed the order for assessment year 2003-04 in which matter is restored to the file of the A O as per direction of the Tribunal, therefore, this issue may also be restored to the f ile of A O for reconsideration. The learned D R did not dispute the order of the Tribunal for assessment year 2003-04 dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eing heard to the assessee. The appeals of the assessee on this issue are allowed for statistical purposes. 6. As regards deductions claimed u/s 80 HHC and 80 IB of the IT Act on service charges in assessment year 2004-05, it was submitted before learned CIT (A) that service income is derived from assessee s business of manufacturing of electric furnaces and same was intricate part of its manufacturing activities. The assessee has received service charges income from the customers for services provided by its service engineers. The service engineers attend the work of installation and commissioning of furnaces sold by the assessee and for providing such services, the assessee had to incur expenses like rent of the office, salary of the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he IT Act on service charge/income is squarely covered against the assessee by the order of the Tribunal in assessment year 2003-04. By following the same order of the Tribunal in earlier years, this ground of appeal of the assessee is dismissed. 9. As a result, both the appeals of the assessee are partly allowed for statistical purposes. ITA No.4528, 4529 and 4530/Ahd/2007(by department) 10. All the departmental appeals are directed against the separate orders of learned CIT (A)-VIII, Ahmedabad dated 10-10-2007 for assessment year 2002-03, dated 31-01-2007 for assessment year 2003-04 and dated 10-10-2007 for assessment year 2004-05. In all the appeals Revenue challenged the order of the learned CIT (A) in holding that the packi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2002-03, in which assessee has explained as regards packing and forwarding charges that the same is charged for the purpose of packing of goods manufactured by it. Learned D R therefore, submitted that packing charges are not part of the manufacturing, industrial activity or export activity of the assessee, therefore, learned CIT (A) should not have allowed the claim of the assessee. On the other hand, learned Counsel for the assessee reiterated the same submissions made before authorities below and submitted that it was included in the bills of sales on which sales tax and excise duty have been paid. Therefore, packing and forwarding income is a part of the sale proceeds/price. Manufactured items have to be packed properly; therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the A O in the appellate order in which A O has mentioned that at the best it could be taken as attributable to business and not derived either from export or from industrial undertaking. The remand report of the A O is also not considered by the learned CIT (A). Considering the above decision and the fact that the learned CIT (A) has not considered evidence on record for the purpose of deciding the issue in favour of the assessee, we accordingly set aside the orders of the learned CIT (A) and restore this issue to his file with direction to re-decide the issue by giving reasonable sufficient opportunity of being heard to the assessee. The learned CIT (A) shall pass a speaking order discussing the entire evidence and material on record ..... X X X X Extracts X X X X X X X X Extracts X X X X
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