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TMI Blog2018 (10) TMI 1510X X X X Extracts X X X X X X X X Extracts X X X X ..... ribe to the factual finding recorded by the CIT (A) after going through the terms and conditions of the agreement and the drawings, etc. The Tribunal lost sight of the most important factor pointed out by the assessee before the CIT (A) that the term 'shut down' does not denote repairs and maintenance and that it is a technical term, which is peculiar to the industry in question. Therefore, if the Tribunal had to come to a different conclusion, it should have reappreciated the factual position and then rendered a finding, which it has failed to do so. Rather, the Tribunal sought to adopt a very narrow approach by referring to the dictionary meaning of the words 'assembly' and 'installation'. It has to be borne in mind that Section 80HHC of the Act is a provision, which grants incentive to the assessee for growth and development and as held by the Hon'ble Supreme Court in several decisions, such provision should be liberally construed, as it will promote economic growth of the country. The Statute has clearly circumscribed as to what is a foreign project and we agree with the factual findings recorded by the CIT (A) that the scope of work done by the assessee will fall within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reply. Yet, the Assessing Officer was not satisfied and ultimately had completed the assessment under Section 143(3)(ii) of the Act vide order dated 26.3.2004 disallowing the claim of the assessee to the tune of ₹ 17,42,508/- towards the foreign project. Aggrieved by the disallowance, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals)-V, Chennai [for short, the CIT (A)], who, by order dated 27.3.2006, allowed the appeal filed by the assessee. The Revenue filed an appeal before the Tribunal challenging the order passed by the CIT (A). The Tribunal, by the impugned order, allowed the appeal filed by the Revenue. This is how the assessee is before us by way of this appeal. 6. The short question, which requires to be considered, is as to how the project executed by the assessee requires to be interpreted for being entitled or otherwise to the benefits under Section 80HHB of the Act. The relevant portions of the said provision read as follows : Deduction in respect of profits and gains from projects outside India. 80HHB : (1) Where the gross total income of an assessee being an Indian company or a person (other than a company) who is resident ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f any machinery or plant. 8. Before the CIT (A), the assessee contended that this was a project by itself, as it had resulted in the construction of a new structure, though called as shut down, which was a technical term and did not constitute repairs or maintenance work. The assessee further contended that the Assessing Officer had given a very restricted and narrow meaning to the expression 'project work' as mentioned in Section 80HHB of the Act and had not followed the decision of the Hon'ble Supreme Court in the case of Continental Construction Limited Vs. CIT [reported in (1992) 195 ITR 81]. 9. Before the CIT (A), the assessee further pointed out that the erection work involved certain technical specialization like rigging, welding and cutting, that the erection works were carried out in normal schedule as well as during shut down period also, that in certain cases, for heavy lifting and welding, etc., an operating plant would not permit a normal schedule of erection due to hazardous chemicals or gases and that it was necessary to carry out the work of erection during plant shut down only. The assessee also explained as to how the process involved in a he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #39; as defined under Section 80HHB(2)(b)(ii) of the Act. 12. The learned Standing Counsel for the respondent/Revenue has placed reliance on the decision of the Hon'ble Supreme Court in the case of Commissioner of Customs Vs. Dilip Kumar and Company [reported in 2018 SCC Online SC 747]. 13. The decision in the case of Dilip Kumar and Company had been relied upon to support the submission that strict interpretation involves plain reading of the Statute and it is a well settled principle that when the words in a Statute are clear, plain and unambiguous and only one meaning can be inferred, the Courts are bound to give effect to the said meaning irrespective of consequences. 14. Therefore, it is the submission of the learned Standing Counsel that the words in the Statute and more particularly the definition of the expression 'foreign project' has to be read in the manner mentioned in the Statute, that strict interpretation should be given and that assembly or installation cannot encompass shut down. He further submits that the principle of ejusdem generis will come into play. 15. The meaning of the expression 'foreign project' as envisaged in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry narrow approach by referring to the dictionary meaning of the words 'assembly' and 'installation'. 18. It has to be borne in mind that Section 80HHC of the Act is a provision, which grants incentive to the assessee for growth and development and as held by the Hon'ble Supreme Court in several decisions, such provision should be liberally construed, as it will promote economic growth of the country. 19. The decision in the case of Dilip Kumar and Company, relied upon by the learned Standing Counsel for the Revenue, does not render any assistance to the case of the Revenue, since the Hon'ble Supreme Court has laid down as to in what manner Section 80HHB(2)(b) is required to be interpreted. Moreover, we are not testing the case of the assessee based on an exemption notification, which was the subject matter of consideration before the Hon'ble Supreme Court in the case of Dilip Kumar and Company. 20. The Statute has clearly circumscribed as to what is a foreign project and we agree with the factual findings recorded by the CIT (A) that the scope of work done by the assessee will fall within the meaning of the expression 'foreign proje ..... X X X X Extracts X X X X X X X X Extracts X X X X
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