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TMI Blog2024 (5) TMI 1133X X X X Extracts X X X X X X X X Extracts X X X X ..... rofits derived from repairs and maintenance service of the moulds manufactured in the appellant industrial undertaking?" FACTS 3. Briefly stated the facts of the present case are that the appellant/assessee is "HUF". It is engaged in manufacturing of moulds supplied to the main group concerns (Drolia Group), namely, M/s. Today's Writing Products Limited (for short TWPL) and M/s. Premium Writing Products (for short PWP). During the assessment year relevant to the previous year in question, the appellant/assessee has sold moulds and certain parts manufactured by it in its industrial undertaking entitled for deduction under section 80IB of the Act, 1961. Apart from the above, the appellant/assessee received a sum of Rs.96,01,410/- towards 'job work charges' and for 'repairing and maintenance service'. The assessing officer while passing the assessment order dated 28.12.2006 did not allow deduction under Section 80IB with respect to the aforesaid sum of Rs.96,01,410/- holding that the said amount is not eligible for deduction. Aggrieved with the assessment order, the assessee filed an appeal being 123/CC-XX/CIT(A)C-III/07- 08 before the Commissioner of Income Tax (Appeals), Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l income of the assessee, a deduction from such profits and gains of an amount equal to such percentage and for such number of assessment years as specified in this section. (2) This section applies to any industrial undertaking which fulfils all the following conditions, namely:- (i) it is not formed by splitting up, or the reconstruction, of a business already in existence: Provided that this condition shall not apply in respect of an industrial undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such industrial undertaking as is referred to in Section 33- B, in the circumstances and within the period specified in that section; (ii) it is not formed by the transfer to a new business of machinery or plant previously used for any purpose; (iii) it manufactures or produces any article or thing, not being any article or thing specified in the list in the Eleventh Schedule, or operates one or more cold storage plant or plants, in any part of India: Provided that the condition in this clause shall, in relation to a small-scale industrial undertaking or an industrial undertaking referred to i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acture or produce articles or things or to operateits cold storage plant or plants during the period beginning on the 1st day of April, 1993 and ending on the 31st day of March, 2004 : Provided further that in the case of such industries in the North-Eastern Region, as may be notified by the Central Government, the amount of deduction shall be hundred per cent of profits and gains for a period of ten assessment years, and the total period of deduction shall in such a case not exceed ten assessment years: Provided also that no deduction under this sub-section shall be allowed for the assessment year beginning on the 1st day of April, 2004 or any subsequent year to any undertaking or enterprise referred to in subsection (2) of Section 80-IC. Provided also that in the case of an industrial undertaking in the State of Jammu and Kashmir, the provisions of the first proviso shall have effect as if for the figures, letters and words "31st day of March, 2004", the figures, letters and words "31st day of March, 2012" had been substituted: Provided also that no deduction under this sub-section shall be allowed to an industrial undertaking in the State of Jammu and Kashmir which i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of certain subsidies including transport subsidy granted by the Government to industries established in remote areas, was in question. The Hon'ble Supreme Court referred to certain judgments in which it was observed that the object of transport subsidy is not augmentation of revenue instead the object is to improve trade and commerce between the remote parts of the country and other parts which was said to be achieved by making it feasible and attracting to industrial entrepreneurs to start and run industries in remote parts, by giving them a level playing field so that they could compete with their counterparts in central (non-remote) areas. 11. The judgment in the case of Saraf Exports (supra) relied by learned counsel for the appellant, in fact, does not support the appellant's case. In paragraph 34 of the said judgment the Hon'ble Supreme Court observed as under: "34. On an analysis of sections 80-IA and 80-IB it becomes clear that any industrial undertaking, which becomes eligible on satisfying sub-section(2), would be entitled to deduction under sub-section (1) only to the extent of profits derived from such industrial undertaking after specified date(s). Hence, apart ..... X X X X Extracts X X X X X X X X Extracts X X X X
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