Gail (India) Ltd vs Dy. CIT
The cross appeals by the assessee and revenue preferred against the order of the CIT(A)-LTU, New Delhi dated 28.8.2014 pertaining to assessment year 1998-99. Assessee’s appeal is as follows:- Commissioner of Income-tax (Appeals) (CIT(A)) erred on facts and in law in holding that “Lean gas” is manufactured/ produced only at the two LPG Plants for the purpose of allowing deduction under sections 80I/ 80IA and not at various customer terminals, as claimed by the appellant following the order of CIT (A) for the preceding assessment year. The CIT(A) erred in holding that the activities undertaken by the appellant at its customer terminals did not constitute “manufacture or production of any article or thing”, so as to be eligible for deduction. CIT(A) erred in holding that the aforesaid activities undertaken were merely for the enabling supply of lean gas at customer terminals and could not be regarded as “manufacture or production of any article or thing”.
The issues raised are identical to the issues considered by the Tribunal in assessee’s own case in the previous assessment year 1997-98 wherein the Tribunal has followed the earlier year’s decision of the coordinate bench. In the result the appeal filed by the revenue is dismissed and appeal filed by the assessee is allowed.