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2014 (12) TMI 1423 - ITAT MUMBAIDeduction u/s. 80IB(5) - manufacturing activity done by the assessee or not? - HELD THAT:- Assessee is engaged in the business of manufacturing of lubricating oil and antistatic conning oil as has been mentioned even in para 3 of the assessment order itself. The entire profit shown in the profit & loss account was claimed as deduction u/s. 80IB(5). Without going into much deliberation and the decision in Daman Plastic [2013 (2) TMI 934 - ITAT MUMBAI] Assessee is entitled for deduction u/s 80IB of the Act. Even otherwise, a provision in the taxing statute granting incentives for promoting growth and development should be construed liberally. Our view is fortified by the decision in Bajaj Tempo Ltd. [1992 (4) TMI 4 - SUPREME COURT], Impel forge and allied Industries Ltd. [2008 (12) TMI 370 - PUNJAB & HARYANA HIGH COURT] and CIT vs. Sadhu Forging Ltd we are of the view, that the assessee is entitled for deduction u/s. 80IB. Even otherwise, a provision in the taxing statute granting incentives for promoting growth and development should be construed liberally. Our view is fortified by the decision in Bajaj Tempo Ltd. vs. CIT [1992 (4) TMI 4 - SUPREME COURT] AO denied the deduction merely on the ground that the assessee was doing job work for the sister concern, therefore, ultimate product was produced by sister concern - Assessee claimed that identically for A.Ys. 2005-06 and 2006-07, the claim of the assessee was accepted. The assessee has produced emulsifier by using raw material like fatty acids, glycols, vegetable oils, caustic soda, and other additives, consequently, the 'end product' is 'commercially known differently', therefore, in our view, the new article/new product emerged/manufactured, consequently, the assessee is entitled for deduction u/s. 80IB of the Act. Our view is fortified by the decision and the ratio laid down in CIT vs. Vinbros & Company [2012 (9) TMI 802 - SC ORDER], CIT vs. Zainab Trading Pvt. Ltd. [2011 (2) TMI 109 - MADRAS HIGH COURT], CIT vs. Esquire Translam Industries [2010 (7) TMI 77 - MADRAS HIGH COURT], Titanor Components Ltd. [2013 (11) TMI 69 - DELHI HIGH COURT], CIT vs. Ambuja Ginning Pressing & Oil Company Pvt. Ltd. [2010 (11) TMI 380 - GUJARAT HIGH COURT] and Midas Polymer Compounds Pvt. Ltd. [2010 (12) TMI 414 - KERALA HIGH COURT] Since, the 'end product' was 'commercially known differently', therefore, it can be said that it was manufacturing activity done by the assessee, therefore, in view of the discussion made hereinabove, we are of the view that assessee is entitled for deduction u/s. 80IB. Appeal of the assessee is allowed.
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