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2019 (7) TMI 423 - ITAT MUMBAIDeduction u/s 80IB - process involved in converting Carcass into meat - 'manufacturing’ or ‘production’ - difference in between input and the output in the name, character and use - different marketable product - HELD THAT:- Final product produced by the assessee-company is commercially different from the raw-material (Buffalo Carcasses), the process of production involved a number of steps and processes. The raw-material used by the assessee cannot be substituted by the final product. The production process as explained by assessee resulted not only in qualitative changes, but also a distinct product for end-use of the consumer. Thus, in our considered view, the assessee fulfilled the requisite requirement i.e. manufacturing or producing an article of things for the purpose of section 80IB of the Act. In the result, ground no.1 of the appeal raised by assessee is allowed. Disallowance of deduction u/s 80HHC - CIT(A) confirmed the action of AO that if the export house is not entitled to claim deduction u/s 80HHC, it cannot pass the benefit to the supporting manufacture - HELD THAT:- We have noted that Bangalore Tribunal in case of Shamanur Kallappa & Sons Vs ACIT . [2008 (8) TMI 455 - ITAT BANGALORE-A] held that wherein the assessee being supporting manufacture claimed deduction u/s 80HHC on the basis of disclaimer certificate issued by State Trading Corporation (STC) certifying that it has not claimed deduction on the export of trading goods. The assessee apparently complied the statutorily requirement provided under section 80HHC(1A) it was held that only condition stipulated by the legislation is that the same benefit should not be claimed by both the export house and the supporting manufacture. To ensure the same, it was made a pre-condition that export house should furnishes a certificate of disclaimer in respect of export turnover, and the amount of deduction available to the export house would be accordingly reduced in the specified manner. The decision of Tribunal was upheld by Hon’ble Karnataka High Court [2015 (8) TMI 507 - KARNATAKA HIGH COURT] - additional grounds of appeal raised by the assessee are allowed. The assessing officer is directed to re-compute the deduction under section 80IB & 80 HHC in accordance with law. - Decided in favour of assessee.
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