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Income Tax Appellate Tribunal, ‘D’ BENCH, CHENNAI
Before: SHRI N.R.S. GANESAN & SHRI A. MOHAN ALANKAMONY
PER N.R.S. GANESAN, JUDICIAL MEMBER:
This appeal of the Revenue is directed against the order of the Commissioner of Income Tax (Appeals) -1, Coimbatore, dated 29.06.17 and pertaining to assessment year 2011-12.
The only issue arises for consideration in the appeal is with regard to claim of deduction under Section 80-IB(10) of the Income-tax Act, 1961 (in short 'the Act').
Ms. S. Vijayaprabha, the Ld. Departmental Representative, submitted that the assessee claimed deduction under Section 80-IB(10) of the Act in respect of poultry feed manufactured. During the year under consideration, according to the Ld. D.R., the assessee has not made any sales to the outsider / 3rd party. The entire products were used for the consumption of self and sister concern. Therefore, according to the Ld. D.R., the assessee is not eligible for deduction under Section 80-IB of the Act.
On the contrary, Shri N. Anush Shanker, the Ld. representative for the assessee, submitted that an identical issue came before this Tribunal in the assessee's own case for assessment year 2010-11 in I.T.A. No.1396/Mds/2015. This Tribunal found that the activity of the assessee amounts to manufacture and therefore, eligible for deduction under Section 80-IB of the Act. Moreover, according to the Ld. representative, the captive consumption is also eligible for deduction under Section 80-IB of the Act.
We have considered the rival submissions on either side and perused the relevant material available on record. The eligibility of the assessee for deduction under Section 80-IB of the Act is not disputed.
The Ld. D.R. claims that during the year under consideration, there was no sales to the third parties. The entire products manufactured by the assessee were consumed by the assessee itself. Therefore, the question arises for consideration is when the products manufactured by the assessee are consumed captively or for its own use, whether the assessee is eligible for deduction under Section 80-IB of the Act? This Tribunal is of the considered opinion that even though the products manufactured by the assessee are consumed captively or by the assessee itself, the assessee is still eligible for deduction under Section 80-IB of the Act. Moreover, this Tribunal in the assessee's own case for assessment year 2010-11 in found that the assessee is eligible for deduction under Section 80-IB of the Act. In view of the above, this Tribunal do not find any reason to take a different view than that of the co-ordinate Bench of this Tribunal for assessment year 2010-11. Therefore, the order of the CIT(Appeals) is confirmed.
In the result, the appeal filed by the Revenue is dismissed.