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TMI Blog2022 (8) TMI 776X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts and circumstance of the case and in law the learned CIT(Appeals) erred in deleting the addition made on account of disallowance of administrative services charged to TACO amounting to Rs.7,37,35,000? 2. Whether, on the facts and circumstance of the case and in law the learned CIT(Appeals) erred in deleting the addition made u/s 80IC amounting to Rs.2,88,48,000/-?" 2. In the Cross Objection Appeal the Assessee raised following Cross Objections: "Claim of Allowability of Education Cess: 1. The Respondent prays that the liability for education cess on income tax paid for the year ought to be allowed as tax-deductible expenses while computing its taxable income. General: 2. The Respondent craves leave to add, alter, ame ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the ITAT Pune bench has held in Assessee's own case as under : Quote, " Admittedly, the issue arising before us is identical to the issue before the Tribunal in Tata Johnson Controls Automotive Ltd. Vs. DCIT (supra) and following the same parity of reasoning, we hold that the said expenditure is to be allowed in entirety in the hands of assessee being paid in accordance with the terms of the Agreement agreed upon between the parties and for the purpose of carrying on the business of assessee more efficiently. It may be pointed out herein that the assessee had initially entered into an Agreement with TACO in 1997 and the said expenditure had been allowed in the hands of assessee from year to year. However, the assessee renewed the Ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is dismissed. Ground No.2: 11. With reference to Ground No.2 of the revenue, the Ld.DR submitted a written submission. Submission of the Ld.DR is reproduced here as under : Quote " 2.0 During the year under consideration which is the first year for the Pantnagar Plant the appellant claimed deduction u/s 80IC of the Act. During the course of assessment proceedings the AO vide Notice u/s 142(1) dated 20.03.2015 asked the assessee to substantiate its claim u/s 80IC with necessary proofs which is clear from point No. 1 of assessee's submission before the AO dated 26.03.2015 and 31.03.2015 [copies placed at Page 37 and 38 of appellant's paperbook]. The AO has observed that on verification of fixed asset schedule it is seen that there wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t as claimed, during the year were of the nature of the manufacturing, so as to make the appellant eligible to claim deduction u/s 80IC during the year" was diverted to a limited academic discussion that the activity of assembling which results into a new product is tantamount to manufacturing, without taking the facts of the case into consideration. 6.1 Therefore, to analyse the issue whether the assessee has actually taken up manufacturing activities of assembling / manufacturing of ECS during the year under consideration, the facts of the case needs to be taken into consideration. It is seen from the index of the appellant's paperbook that documents placed at Pages 632 to 672 are relevant documents on this issue. These documents were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... achinery was blank, coloumn 28 regarding related party transaction was just blank, if it was not applicable then they should have mentioned so. The Ld.DR submitted that assessee has not submitted evidence of installation of machinery before AO. Per contra the ld.AR submitted that the said issue was not raised by the assessing Officer in the assessment order. But it is observed that the assessee has filed in its paper book from page number 645 to 652 copies of the documents filed before District Industrial centre , having stamp of District Industrial Centre. In the said document the Assessee had mentioned value of the machinery. The assessee submitted that these papers were filed before the ld.CIT(A). The Revenue has not raised any ground of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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