2004 (12) TMI 66

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..... isions of the Supreme Court, reached a conclusion that the assessee was carrying out a manufacturing process for making the laminated cartons. The reasoning given by the Tribunal cannot be faulted, as it does not suffer from any errors. The Tribunal has rightly discarded the view taken by the Assessing Officer
Judge(s) : B. H. MARLAPALLE., N. A. BRITTO. JUDGMENT The judgment of the court was delivered by B.H. Marlapalle J. - This appeal arises from the order dated September 28, 2001, passed by the Income-tax Appellate Tribunal, Panaji, by allowing an appeal against the order passed by the Assistant Commissioner of Income-tax as an Assessing Officer. The question of law as raised in this appeal is: "Whether the operations carried out .....

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..... n the premises of the assessee, namely, (a) raw material paper was purchased from M/s. ITC Bhadrachalam Paper Boards Ltd.; and (b) the said paper is printed at the factory of the sister concern of the assessee-company, M/s. Neographics India. Under these circumstances, the Assessing Officer held that the assessee was not engaged in any manufacturing operations so as to claim the deduction. His reasoning was summarised in the following words: "'Manufacture' implies a change but every change is not manufacture and yet every change of an article is a result of treatment, labour and manipulation. But something more is necessary and there must be transformation; a new and different article must emerge having a distinct name, character or use. .....

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..... carton by look or by characteristics. It is a commodity and article called as 'cartons'. 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." We have no doubt in our mind that the Tribunal has considered the nature of operations carried out by the assessee and by relying upon the three decisions of the Supreme Court, reached a conclusion that the assessee was carrying out a manufacturing process for making the laminated cartons. The reasoning given by the Tribunal cannot be faulted, as it does not suffer from any errors. The Tribunal has rightly discarded the view taken by the Assessing Officer. In the result, th .....

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