C.I.T vs. JACKSON ENGINEERS LTD

ITA/251/2008HC DelhiDLHC01110158200723 December 2009Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE SIDDHARTH MRIDUL18 pages
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What did the High Court hold?

The Delhi High Court held that the activity of assembling diesel generating sets qualifies as manufacturing for Section 80IA. However, forfeited advances from customers, treated as business income, are not eligible for deduction under Section 80IA.

What were the facts?

The assessee claimed deduction under Section 80IA for profits from assembling diesel generating sets. The Assessing Officer disallowed it, stating assembly is not manufacturing. The assessee also claimed deduction on forfeited advances from customers.

What were the issues?

Whether assembling diesel generating sets constitutes manufacturing for Section 80IA, and if forfeited customer advances are eligible for Section 80IA deduction.

Which sections of the Income-tax Act were involved?

Section 80IA

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IN THE HIGH COURT OF DELHI AT NEW DELHI Reserved on: 25th November, 2009 %

Pronounced on : 23rd December, 2009

Commissioner of Income Tax

. . . Appellant

through : Mr. N.P. Sahini, Advocate.

VERSUS

Jackson Engineers Ltd.

. . .Respondent

through: Mr. Kanan Kapoor, Advocate.

CORAM :-

THE HON’BLE MR. JUSTICE A.K. SIKRI

THE HON’BLE MR. JUSTICE SIDDHARTH MRIDUL

1.

Whether Reporters of Local newspapers may be allowed to see the Judgment?

2.

To be referred to the Reporter or not?

3.

Whether the Judgment should be reported in the Digest?

A.K. SIKRI, J.

1.

This appeal was heard on the following two questions of law:

“i) Whether on the facts of the present case, the Tribunal was justified in law in allowing deduction

under Section 80IA of the Act in disregard of the fact that the activity carried on by the assessee did

not qualify as “manufacturing activity” for the purpose of under Section 80IA?”

ii) Whether on the facts and in the circumstances of the case, the Tr

The order continues below.

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