- (1.) The Court : Affidavit of service is filed showing service of notice in pursuance of notice of a coordinate Bench issued on 5th January, 2017. Let affidavit be kept with the records.
(2.) The present appeal is against an order of the Income-tax Appellate Tribunal Bench SMC Kolkata, which in substance allow the assessee's claim for deduction under Section 80IB of the Income-tax Act, 1961. The assessee goes unrepresented before us. We find from the records that the assessee went unrepresented before the Tribunal also. It is also revealed from records that the assessee operates a small manufacturing unit at Yanam in Pondicherry and this unit has been registered as a Small Scale Tiny Unit. The assessee has been claiming deduction in terms of Section 80IB of the Income-tax Act since its inception in the financial year 2001-02. In this appeal, however, we are concerned with the assessment year 2004-05 corresponding to the financial year 2003-04. There was scrutiny assessment in that assessment year and certain expenses were added. So far as the subject of dispute in this appeal is concerned however, that did not form the basis of scrutiny assessment.
(3.) Deduction was claimed by the assessee, as we have already observed, under Section 80IB of the 1961 Act. So far as this appeal is concerned, question arises as regards non-fulfilment of condition contained in clause (iv) of Subsection (2) of Section 80IB, which would disentitle an industrial undertaking from claiming deduction under Section 80IB(1) of the Act. The said clause reads: - "[iv] In a case where the industrial undertaking manufactures or produces articles or things, the undertaking employs ten or more workers in a manufacturing process carried on with the aid of power, or employs twenty or more workers in a manufacturing process carried on without the aid of power.";