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TMI Blog2019 (3) TMI 1308X X X X Extracts X X X X X X X X Extracts X X X X ..... ears 1996-1997, 1997-1998 & 1998-1999 and holding that the Assessee is entitled to avail the benefit of deduction under Section 80IA of the Act:- "1. Whether on the facts and circumstances of the case, the Tribunal was right in holding that the Assessee was entitled to the benefit of Section 80IA when there is a concurrent finding of fact by both the Lower authorities that there was no new industrial unit, machinery or infrastructure as claimed?; 2. Whether on the facts and circumstances of the case, the Tribunal was right in holding that the Assessee was entitled to the benefit of Section 80IA even if it does not do the manufacturing process on its own but gets it done by third parties?; 3. Whether on the facts and circumstances of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herbs are made free from extreneous materials. Then the herbs undergo fumigation in a Fumigation Chamber. The fumigation process goes on for 24 hours, which is done by use of chemicals through manually operated machines. After it is processed, the herbs are subjected to grinding separately to a find powder in a mill and this process is carried out on job work basis. Such grinded powder is then sieved at 120 mesh size which is also carried on manually. Later on, the sieved power is blended and again sieved at 40 mesh sieve and such final product is known as Bandruff which is sold in the market for further process of adding perfume by the buyers of this product. It is seen from the manufacturing process that most of the processes do not req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectly followed the decision of the Hon'ble Bombay High Court in the case of CIT v. M/s. Pentwalt India Ltd. (196 ITR 813)(Bom.), wherein it was observed as follows:- 'an Assessee would be said to be engaged in manufacturing activity if he is dong a part of the manufacturing activity by himself and for the rest of it, engages in the services of somebody else on a contract other than a contract of purchase. The Assessee canvassed orders for supplying, erecting and commissioning sugar and tea machinery. The Assessee's activity consisted of (i) Canvassing of orders (ii) preparing of designs and drawings on the basis of orders (iii) placing orders for the manufacture of machinery with TH (iv) to see that the manufacturing process ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Year 1996-97 and 1997- 98. We again clarify that the claim of deduction under Sec.80-IA has not been pressed for the Assessment Year 1998-99 before us and therefore, no such claim should be allowed for the Assessment year 1998-99." 4. The learned counsel for the Appellant/ Revenue submitted that the learned Assessing Authority has found a personal inspection of the factory premises that the Assessee had neither purchased any new plant or machinery nor did it have a factory as such and that most of the work was carried out manually and therefore, the Assessee was not entitled to the said deduction under Section 80IA of the Act. 5. On the other hand, the learned counsel for the Assessee supported the impugned order of the Tribunal. 6. Havi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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