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Issues involved: Interpretation of Section 10A for claiming exemption.
Summary: The High Court of Calcutta, in the case, addressed the issue of whether the assessee could benefit from Section 10A. The department argued that certain activities like fixing buttons, ironing, and packing garments did not amount to manufacturing, thus the assessee was not eligible for exemption under Section 10A. The Court questioned whether a garment could be considered finished goods without undergoing manufacturing processes like stitching and button-holing. It was emphasized that cloth needed to be transformed into finished goods through manufacturing processes to qualify for exemption under Section 10A. The Court agreed with the Tribunal's decision that the activities performed by the assessee constituted manufacturing, making them eligible for the benefits under Section 10A. The Court upheld the Tribunal's decision based on the facts and circumstances of the case, citing relevant circulars, decisions, and licenses to support the conclusion that the assessee's activities qualified as manufacturing under Section 10A. The Court found no reason to interfere with the Tribunal's well-reasoned order and rejected the Revenue's grounds for appeal. Consequently, the appeal (ITA No. 657 of 2008) was dismissed, and parties were instructed to act on a signed copy of the order. Urgent certified copies of the order were to be provided to the parties upon application and compliance with formalities.
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