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TMI Blog2013 (10) TMI 468X X X X Extracts X X X X X X X X Extracts X X X X ..... as filed declaring total income of Rs.37,66,430/-, which was processed u/s. 143(1) of the Act and assessment u/s. 143(3) was completed on 23.10.2006 determining total income at Rs.43,69,589/-. Assessee filed appeal before the CIT(A) who had confirmed the additions made by the Assessing Officer. Assessee filed second appeal before the Hon'ble 1TAT, Ahmedabad, who vide order in ITA No.2l68/Ahd/2017 dated 12.2.2010 has set aside the issue regarding disallowance of deduction of Rs.6,03,164/- u/s. 80IB to the file of A.O. to decide the same afresh. While finalizing the assessment u/s.143(3) dated 23.10.2006, the A.O. has disallowed the claim of deduction u/s. 80IB of the Act of Rs. 6,03,164/- in respect of Karjan Unit, which was claimed by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s after undergoing the process indicated above certainly results in emergence of a new and distinct commodity. However, in the instant case, the assessee is only engaged in the business of conversion of liquid argon into gases. The assessee is storing the argon in cryogenic storage tank and is refitting in cylinders for sale in the retail market. There is nothing to suggest that the assessee is performing any process on the liquid argon so as to change its composition, character or use or even its name in commercial world. Therefore, it cannot be said that the business of the assessee is manufacturing or producing any article or thing. 2. Regarding the definition of the word Manufacture' as contained in section 2(293A) of the income tax Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the conditions laid down u/s. 80IB of the Act? At the outset, the Ld. Counsel of the assessee faily stated that the similar issue has already been decided by this Tribunal in IT N0.299/Ahd/2003 dated 11.07.2008 in assessee's own case, where it is held as under:- "7. In view of [he foregoing, the position that emerges from the above discussion can tie summed up thus: The three expressions "processing", "manufacture" and "production" used in various taxing statutes, are not interchangeable expressions. Though often used in juxtaposition, they convey difference concepts and refer to different activities, "processing" is a much wider concept. The nature and extent of processing may vary from case to case. Every process does not tantamount to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parating sure argon from oxygen (while also achieving high recovery of both products) requires many stages of distillation. Argon is prepared by fractional distillation of liquid air. Its extreme inertness has caused it to be substituted for nitrogen in electric light bulbs. It is mixed the neon is so called neon signs (gas discharge tubes) to produce a green to blue glow. It is used as a protective atmosphere in arc welding, in the refining of reactive elements, and in the growing of crystals for use in semiconductor devices. In the above said process of refilling of argon in cylinders from cryogenic tank, neither manufacture nor production is involved nor does a new product emerge even though the argon is handled under controlled pressure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 80IB of the I T Act and disallowed same 4. In appeal this action of assessing officer was confirmed by Ld. CIT(A). 5. At the time of hearing before us learned counsel of the assessee fairly conceded that the issue is now covered against the assessee and in favour of revenue vide decision of Hon'ble ITAT in assessee's case in MA Nos. 75 to 78/Ahd/2010 dated 15th June, 2012 for the A.Y. 1998-99, 2002-03, 2003-04, and 2005-06 wherein it was held as under:- "4. We have heard the rival submissions and carefully perused the materials on record. On examining order of the Tribunal, we are of the view that the Tribunal had consciously arrived at the decision that the activity of processing and filling argon gas in cylinders does not tantamount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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