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TMI Blog2020 (10) TMI 426X X X X Extracts X X X X X X X X Extracts X X X X ..... the industry, as what is purchased by the assessee includes silicon, sand and waste, which cannot be marketed as such, unless the waste materials are removed. The flow chart, which was produced by the assessee before the AO was referred to CIT(A) and he came to the conclusion that the Assessing Officer was himself mislead by the nomenclature used in the Gate Pass. Revenue carried the matter by way of appeal to the tribunal and the tribunal once again re-appreciated the factual position and found that there is a process of 'manufacture' as defined under the SEZ Act, which takes place in the SEZ unit and also pointed out that the AO himself has accepted that the assessee's unit, processed the raw materials by removing 10 to 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following that the activity of the assessee of purchasing illuminate and removing dust from it and selling the dust removed illuminate amounts to 'manufacture', when Clause(r) of Section 2 of the special Ezonomic Zones Act, 2005 defines 'manufacture' otherwise and that the assessee is eligible for deduction under Section 10AA of the Income Tax Act, 1961? 3. We have heard Mr. M.Swaminathan, Senior Standing Counsel assisted by Ms.V.Pushpa, Junior Standing Counsel for the appellant / revenue and Mr.S.Rajmakesh, learned counsel for the respondent. 4. The learned counsel on either side submitted that this Court in the assessee's own case in T.C.A.No.605 of 2018 has decided the above mentioned substantial question of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee filed an appeal before the Commissioner of Income Tax (Appeals)-III, Madurai, (the CIT(A), for brevity). The appeal was allowed by an order dated 07.12.2016, alleging that the processes carried out by the assessee in their SEZ unit, results in a new product having a different name, character or use, as per the definition of manufacture , as defined under Section 2(r) of the Special Economic Zone Act, 2005 [the 'SEZ Act', for brevity]. 6. The revenue filed an appeal before the tribunal and by the impugned order, the appeal was dismissed. 7. After elaborately hearing the learned counsels for the parties, we find that the entire issue involved in the instant case is fully factual and in our considered view, n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t taken into consideration. 10. The CIT(A) after considering the factual position accepted the submission of the assessee that the semi finished material purchased by the assessee is not marketable and usable in the industry, as what is purchased by the assessee includes silicon, sand and waste, which cannot be marketed as such, unless the waste materials are removed. The flow chart, which was produced by the assessee before the Assessing Officer, was referred to CIT(A) and he came to the conclusion that the Assessing Officer was himself mislead by the nomenclature used in the Gate Pass. After considering the factual materials, the CIT(A) concluded that the process done by the assessee would qualify as 'manufacture', under the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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