Deduction available U/s 80-IC for manufacturing of PET bottles as it fall within the negative list stipulated in serial No. 20 of the 13th schedule of the Income Tax Act and issue of notice on this ground U/s 148 is invalid.
The entire substratum of the notices issued under section 148 of the said Act is that the petitioner’s product namely PET bottles fall within the negative list stipulated in serial No. 20 of the 13th schedule of the said Act. We have noted the arguments of the learned counsel for the petitioner that the product manufactured by them falls under 3923.30.90 of the Central Excise Classification which is not within the range of products specified in Serial 20 of the 13th schedule to the Income-tax Act, that is, within headings 39.09 to 39.15. Therefore clearly, the submission of the learned counsel for the petitioner is correct. The petitioner’s product does not fall within the negative list stipulated in the 13th schedule of the said Act. If that be the case, then, the answer given by the petitioner in serial No. 14(ii)(e) of form 10 CCB filed along with the return is not wrong, false or inaccurate. Therefore, the petitioner cannot be held to have failed to fully and truly disclose all material facts necessary for its assessment.
