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TMI Blog2018 (6) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... s for making and designing the packaging materials. It has also granted approval from District Industries Center, Solan.- If assessee is making packaging material as per the requirement of the product with the aid and help of various kinds of machines as incorporated above and it is also registered as manufacturer under the various laws, then such a general inference based on statement of employees cannot be given much credence. Thus, we do not find any substantial merits in the grounds raised by the Revenue that assessee is not engaged in the manufacturing of packaging material - Decided in favour of assessee X X X X Extracts X X X X X X X X Extracts X X X X ..... sion have been noted and dealt with by the ld. CIT (A) in paragraph 4.2 to 4.5. Ld. CIT (A) after considering the entire facts and material on record and the fact that similar issue had arisen in the assessee's own case for the Assessment Year 2005-06, wherein ld. CIT (A) after detailed discussion has allowed the claim of deduction u/s.80IC. The relevant observation and finding of the ld. CIT (A) reads as under: 4.6 I have carefully considered the arguments and assertions of the AO. as enumerated in the assessment order. I have also carefully considered the submissions made by the Id. AR and the point wise reply given by him. I have also considered the evidences placed on record by the Id. AR. I have taken note of the fact that the issue regarding allowability of deduction u/s 801C was considered in appeal in the ease of this appellant during A.Y. 2005-06, wherein the then CIT(A)-XX1II, New Delhi give a finding that the claim of the appellant was correct and allowable. I have also taken note of the fact that the crucial evidence put forth by the AO for denying deduction u/s. 80IC to the appellant was the statement recorded under oath from the production manager of the appellant at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gistered as manufacturing unit, and therefore, it could not be held that assessee was not engaged in any manufacturing activities. Regarding statement of the employees, he submitted that first of all the employees themselves admitted that they were employed in the year 2009 only, and therefore, such statement does not have any relevance for the earlier years. Apart from that, nothing incriminating has been stated in the said statement and the inference drawn by the Assessing Officer that the assessee is merely doing packaging and doing job work is not correct. He referred to the note of activities of the assessee's firm that the chart showing process of manufacturing to canvass that how the assessee is being carrying out a complex process of making packaging materials as per the order given by the M/s. Gillette India Ltd. The note of activities and chart of process of manufacturing of plastic packaging material has been given from pages 35 to 40 of the paper book. This note was submitted before the ld. CIT (A) during the course of appellate proceedings. Thus, as a matter of consistency and on facts of the case, the deduction claimed u/s.80IC cannot be denied. 8. We have heard the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment year 2005- 06 itself, the machinery added during the year includes machine (Elevator) stacker worth ₹ 2,15,280/- and electronic weighing scale of ₹ 6,900/- which is used in the manufacturing process whose purchase bills have been filed now and examined. Thus from the aforesaid facts the assessee has filed evidences regarding the substantial expansion of plant and machinery which can be considered at the appellate stage in view of the evidences filed during the appeal and examined u/s 250(4) of the IT Act. Submitted for further consideration in appellate proceedings". 9. Based on this remand report and other material facts on record, ld. CIT (A) had given a favourable finding in the following manner:- "7. I have considered the order of the learned Assessing Officer and the remand report submitted by him. The submissions made by the learned AR have also been taken into consideration. It is recapitulated that the matter had been referred to the ld. Assessing Officer under sub section (4) of section 250. In the report dated 19.05.2009, after making suitable enquiries and examining the books of accounts and supporting documents, the ld. Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustomer design performed on different conversion machines by use of thermal, pneumatic and hydraulic technology with specified time, temperature pressure and vacuum regulation. A detailed process charted is drawn out and enclosed. Further we are also into making of tools, dyes and moulds for various such operations including forming, sealing, cutting, etc. We also fabricate and provide various machines for carrying out similar operations. This includes our working on a full fledged tool room operation for which we have numerous working machines We also upgrade and recondition such machines and sell. List of different types of RAW MATERIALS used for making Tools, Dies, Moulds & Machines are like aluminium, epoxy's, wooden blocks and sheets, MDF sheets, different type of rubber sheets (natural and synthetic), marking pins, etc. All types of electrical, electronic, pneumatics, hydraulics and other types of instruments, articles, parts, accessories and consumables required for the above machines, including heaters, motors, cables, air blowing and lighting accessories. Each die needs different activities to be done and no specific process can be defined. We have also entere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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