Principal Commissioner Of Income Tax v. M/S Royal Recycling Industries

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL No. 195 of 2018 ============================================================= PRINCIPAL COMMISSIONER OF INCOME TAXVersusM/S ROYAL RECYCLING INDUSTRIES ============================================================= Appearance :Mrs MAUNA M BHATT, Advocate for the PETITIONER(s) No. 1Mr B S SOPARKAR, Advocate for the RESPONDENT(s) No. 1============================================================= CORAM: HONOURABLE Mr. JUSTICE AKIL KURESHIandHONOURABLE Mr. JUSTICE B.N. KARIA14[th] March 2018 ORAL ORDER (PER : HONOURABLE Mr. JUSTICE AKIL KURESHI) Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal, Rajkot Bench dated 11[th] September 2017, raising the following question for our consideration : “Whether the Appellate Tribunal has erred in law and on facts in deleting the addition of Rs. 9,49,91,927/= made under Section 10B by ignoring the Statutory report of Auditor in form no. 56G, also ignoring the vital and legally admissible evidences proving that manufacturing activity was started in FY 2000-2001 ?” Issue pertains to the assessee’s claim of deduction under Section 10B of the Income-tax Act, 1961 for A.Y 2011-2012. As is well-known, such deduction would be available for ten consecutive years from the commencement of the assessee’s business. Revenue treated such commencement from AY 2001-2002 as against the assessee’s claim that the entire operations; including manufacturing activities, started only during the period relevant to AY 2002-2003. The Revenue relied on a clinching reference to Auditor’s report that the manufacturing activities commenced on 26[th] October 2000. As against this, the assessee placed voluminous evidence before the Assessing Officer which was examined by the Tribunal to come to the conclusion that the manufacturing of production commenced only during the financial year 2001-2002. We have perused the observations of the Tribunal in this respect and find that the entire issue is purely factual in nature. On the basis of material on record, the Tribunal has come to a definite factual finding. No question of law arises. Tax Appeal is dismissed. [Akil Kureshi, J.] Prakash [B.N Karia, J.]