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TMI Blog2020 (1) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... TA-27-2018 and for the respondent(s) in ITA Nos. 5, 6 of 2018 and ITA-321-2019. ORDER AJAY TEWARI, J. (ORAL) 1. This is group of four appeals, three has been preferred by the Revenue and one by the Assessee. 2. ITA No.5 of 2018 has been filed under Section 260A of the Income Tax Act, 1961 against the order dated 13.07.2017 passed by the Income Tax Appellate Tribunal, Division Bench, Chandigarh, in ITA No. 569/Chd/2012 for the A.Y.2008-09. 3. ITA No.27 of 2018 has been filed under Section 260A of the Income Tax Act, 1961 against the order dated 13.07.2017 passed by the Income Tax Appellate Tribunal, Chandigarh Bench, in ITA No. 1159/Chd/2013 for the A.Y.2009-10. 4. ITA No.6 of 2018 has been filed under Section 260A of the Income Tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liers as 'Business Income' instead of 'Income from Other Sources' as considered by the AO. 2. That Hon'ble ITAT has erred in law and facts in allowing deduction u/s 80IC by holding, that process undertaken by the assessee is a manufacturing activity ignoring the facts that conversion of yarn into thread does not amount to manufacturing as it does not bring into existence as new or distinct product and further ignoring the decision of Hon'ble Supreme Court in the case of CIT Vs. Emptee Ply Yarn (P) Ltd., in Civil Appeal No. 786 of 2010 dated 20.01.2010, wherein it has been held that twisting and texturising of yarn would not constitute 'manufacturing' in every case." 9. Learned counsel for the Assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly be used for making a texturized yarn, which, in turn, can be used in the manufacture of fabric. In other words, POY cannot be used directly to manufacture fabric. According to the expert, crimps, bulkiness etc. are introduced by a process, called as thermo mechanical process, into POY which converts POY into a texturized yarn. If one examines this thermo mechanical process in detail, it becomes clear that texturising and twisting of yarn constitutes 'manufacture' in the context of conversion of POY into texturized yarn. At this stage, we may also reproduce, hereinbelow, para 10 of our judgment in the case of C.I.T. v. Oracle Software India Ltd., reported in MANU/SC/0040/2010: 2010 (1) SCALE 425. "The term "manufacture" implies ..... X X X X Extracts X X X X X X X X Extracts X X X X
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