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ITAT allowed claim of exemption u/s 10BA (of Income Tax Act, 1961)
ITAT allowed claim of exemption u/s 10BA (of Income Tax Act, 1961)
Assessee was a manufacturer of wooden furniture, and filed her return of income at NIL income. Assessee claimed exemption u/s 10BA (of Income Tax Act, 1961). AO disallowed the claim on the ground that assessee purchased readymade furniture and exported the same after minor polishing and packing. CIT(A) allowed assessee's appeal. ITAT held that issue was covered in assessees favour by the earlier years' findings of the Tribunal.-500549
1 .Assessee was a manufacturer of wooden furniture, and filed her return of income at NIL income.
2 .After reducing donation and rental income etc., profit had been shown at Rs. 1,92,52,903 and assessee claimed exemption u/s 10BA (of Income Tax Act, 1961).
3 .AO disallowed the claim the ground that purchases were made for trading purposes on Form 17B of the Sales Tax Act/Rules, no artistic items are manufactured by the assessee and as per sub-section (2) of section 10BA (of Income Tax Act, 1961), and the assessee's activities were not manufacturing or production of eligible articles or things.
4 .AO held that assessee was primarily engaged in purchasing readymade furniture from various suppliers and exporting the same after minor polishing and packing.
5 .CIT (A) allowed the assessee's appealOn appeal, the ITAT held as under:
6 .The ld. CIT (A) considered the findings for A.Ys. 2004-05, 05-06 and 06-07 and allowed the appeal in favour of the assessee.
7 .Therefore, this issue is covered by the earlier years' findings of this bench and squarely applicable on the identical facts and circumstances of the case. 8 .Therefore, we uphold the order of the ld. CIT (A).
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