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TMI Blog2013 (8) TMI 1028X X X X Extracts X X X X X X X X Extracts X X X X ..... hese appeals are filed by the revenue and are directed against two separate orders passed by Ld. CIT(A) dated 25/8/2012 for assessment years 2007-08 and 2009-10 respectively. Ground of appeal in both the appeals read as under: Grounds of Appeal for A.Y.2007-08: The CIT(A) has erred in law and in circumstances of the case and in allowing ₹ 99,58,338/- as deduction u/s. 8OIC of the I.T. Act, 1961 considering the assessee's business activity as manufacturing instead of assembling Luggage carriers, Wheel caps etc. II. The appellant prays that the order of the CIT(Appeals) on the above grounds be set aside and that of the AO be restored. Ill. The appellant craves leave to amend or alter any ground or to submit additional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the shape required which again depends upon the product being manufactured and the vehicle for which the same is intended. b) Bending : This step involves bending of the raw materials ( from previous step) so as to arrive at the intended shape. The S.S. piles are usually bent using CNC machines. These machines ensure a high level of precision that is required in such type of products for giving desired shape to S.S.pipes in front guard and rear guards. M.S.Pipes/Patta are cut and bent on Power Press Machine. c) Grinding : Some types of raw material such as M.S.Profiles, M.S.Brackets etc requires further processing i.e. grinding involves removing roughness from corner edge of brackets/profiles by hand grinder machines. d) Holing : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacture are required to be polished so as to get the required finishing. Depending upon the final product, polishing may be required immediately after the cutting process where individual components such as pipes, profiles or brackets are polished and thereafter once they are assembled into the frame, the entire assembled frame is sent for polishing. g) Final assembly. Once the semi finished product is received from polishing, the final assembly is undertaken for the purpose of finishing the process. This involves assembly of different components such as rubber parts, plastic parts, monogram etc to the polished frame of the final product. H) Cleaning/packing : After final assembly the finished product is cleaned and wrapped with pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Industries vs. ACIT 106 TTJ 128 (Born.) 4. On the basis of aforementioned submissions of the assessee Ld. CIT(A) has held that the activities of the assessee are manufacturing activity, therefore, the assessee is entitled to get deduction under section 80 IC. The department is aggrieved, hence, has filed aforementioned grounds. 5. At the time of hearing relying upon the observations of AO in the assessment order Ld. DR submitted that activity of the assessee cannot be considered to be a manufacturing activity. Therefore, she pleaded that the AO was right in disallowing the claim made by the assessee under section 80 IC. She submitted that Ld. CIT(A) has wrongly allowed the relief to the assessee and his order should be set aside and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e different uses. The final product is printed product is printed paperboard container, plain and varnished laminated, foil embossed and *axed cartons, printed E-flute corrugated board cartons and printed catch covers. The characteristics of the finished goods are 'totally changed after laminating, in printing, punching and pasting. The finished product cannot be called paperboard or paper carton by look or by characteristics. It is a commodity an1 article called as 'cartons'. The use of The use of the finished product is specific. The raw material cannot be used in place of the finished product and the finished product cannot be used in place of the raw material. 8 We have no doubt in our mind that the Tribunal has consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dustries Ltd. v. Union of India [1985] 3 SCC 314). 9. Hon'ble Punjab Haryana High Court in the case of CIT vs. Shri Mahesh Chandra Sharma (supra) has held that assessee is liable to claim deduction under section 80 IB on the assembling/job work done by it to manufacture rim, tyre, tube, bearing, drum, spoke, nipple and color. The assessee was using all these items for the purpose of wheel assembling and it was held that the process adopted by the assessee which was in the nature of drum assembly, drum and spoke assembly, tightening operation, balancing operation and tyre mounting operation was in was in the nature of manufacturing and such wheel assembly used by the assessee was certainly a different item from the component which w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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