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TMI Blog2013 (8) TMI 983X X X X Extracts X X X X X X X X Extracts X X X X ..... IT, Sr. DR For the Respondent : Shri D. S. Damle, FCA ORDER PER MAHAVIR SINGH, JM This appeal by revenue is arising out of order of CIT(A)-1, Kolkata in Appeal No.266/CIT(A)-1/C-2/10-11 dated 07.02.2012. Assessment was framed by DCIT, Circle-2, Kolkata u/s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) for Assessment Year 2008-09 vide his order dated 13.12.2010. 2. The only issue in this appeal of revenue is against the order of CIT(A) deleting the disallowance of deduction u/s. 80IB of the Act. For this, revenue has raised following ground: That the Ld. CIT(A-1, Kolkata has erred in law and facts by not relying upon the Apex Court decisions in the cases of (i) Sacs Eagles Chi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order. The test laid down by the Courts is whether the emerging new product is known to the trade, industry and commerce by its own name having its own application use and has a market of its own. Applying the criterias laid down in these judicial decisions we find that in physical appearance, colour and shape the. Poultry feed vastly differs from the input materials. The poultry feed is manufactured in a scientific and systematic manner with the use and assistance of sophisticated plant and machinery acquired at a substantial cost. Poultry feed is recognised not only by trade and commerce but also by the statutory authorities under Central Excise, Sales Tax etc as independent products Applying the ratio laid down in judicial decisions dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ec 801B. The industrial undertakings notified and approved by the Central Govt. and situated in North Eastern States are eligible for tax holiday for period of 10 years as against period of 5 years available to other backwards states. In Notification No. SO 627 (E) dated 04.08.1999 the Central Government has recognised poultry and cattle feed industry, to be an eligible industry u/s 80 IB (4). Once the Central Government notified the poultry feed industry u/s 80 IB (4) then there is a tacit admission that it is engaged in manufacture or production of an article . This is so because unless poultry feed industry does not manufacture an article; no deduction can be permissible u/s 80 IB. Once the Central Govt. accepted in principle that pou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n.com 234 (Hyd.) but we noted that the undertaking for which the assessee has claimed the deduction under section 80IB was merely engaged in converting the poultry mash feed into pellet feed and therefore that Bench has held that there was no change in the basic component or new or different article came into existence. As such, conversion was processing activity not manufacturing. The case of the assessee is entirely different. The assessee s eligible undertaking itself was independently carrying out the complete activity i.e. from mixing, grinding till the pelletisation. The raw materials once consumed cannot be reconverted into the same position. Its utility gets changed. The prime raw materials such as, maize, soya oil, rice bran, etc. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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