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TMI Blog2018 (5) TMI 746X X X X Extracts X X X X X X X X Extracts X X X X ..... ld.Sr.DR Respondent by : Shri Ram Kishan Nowal, ld.AR ORDER Shri S.S.Viswanethra Ravi, JM This appeal by the Revenue is against the order dt. 07-12-2016 of the CIT-A, 2, Kolkata for the A.Y 2012-13. 2. The only issue is to be decided as to whether the CIT-A is justified in holding that the assessee is entitled to claim deduction u/s. 80IE of the Act in the facts and circumstances of the case. 3. During the course of assessment proceedings for the A.Y under consideration the AO held that the assessee is not entitled to seek benefit u/s.80IE of the Act taking into consideration the assessment order for A.Y 2010-11 being initial Assessment Year, wherein it was held no substantial expansion has been taken as per section 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the predecessor's order, the AO is directed to delete the addition and this ground of appeal is allowed. 5. Before us the ld. DR relied on the order of the AO. On the other hand, the ld. AR submits that the order dt. 29-01-2015 passed by the CIT(A)-2, Kolkata was challenged by the revenue before this Tribunal and the Tribunal upheld the order of the CIT-A in holding that the assessee is entitled to claim deduction u/s. 80IE of the Act, copy of the same is on record and referred to paras 9,10 11 of the said order and argued that the issue in hand is covered in favor of assessee by the order dt. 19-11- 2018 in assessee s own case for the A.Y 2010-11 in ITA No. 665/Kol/2015 and submits the assessee is also entitled to claim ded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grow without water and proper irrigation and also irrigation and water supply system also forms plant and machinery. The CIT(A) considering the submissions as well as remand report of the AO deleted the addition made by the AO by observing as under: 9.6. The deduction u/s. 80lE is in relation to produce or manufacture a thing or article. In the case of the appellant there were two stages, the first being the growing of the Green Tea Leaves for which the machineries shown under the head Farm Account were relevant and the second stage was the manufacturing of Tea from the Grown Green Tea Leaves where the machineries other than those shown under the head Farm Account had been utilized. The AR's submission, that if one assessee m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tial expansion, as required u/s. 80lE(2)(ii)/(7)(ii), the above mentioned two machineries viz., Water Supply System (Rs. 97,777) and Irrigation (Rs. 14,35,499), should not be considered and consequently, the appellant should be treated as eligible for deduction u/s. 80lE. Hence, the Assessing Officer is directed to consider that the appellant had duly complied with the requirement of substantial expansion as specified in Section 80lE (2)(ii)/(7)(ii) and therefore the appellant should be allowed deduction of ₹ 26,10,851 u/s. 80lE. Ground No. 8 of the appeal, in view of the discussion at Para 9.4, 9.5 9.6 is allowed. 10. Before us, the Ld. DR submits that the water supply system and irrigation system is the prime requirement wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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