TMI Blog2013 (9) TMI 971X X X X Extracts X X X X X X X X Extracts X X X X ..... chased components, the assessee redesigned, developed and manufactured a single product to suit the requirement of the project. As the end product was a distinct article and a marketable product, the assessee claimed deduction under Section 80 IC of the Income Tax Act. Under Section 2(29BA) of the Income Tax Act, under Finance (No.2) Act of 2009, with effect from 01.04.2009, the definition 'manufacture' was inserted to mean, a change in a non-living physical object or article or thing resulting in transformation of the object or article or thing into a new and distinct object or article or thing having a different name, character and use; or bringing into existence of a new and distinct object or article or thing with a different chemica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Board for decentralization of various collection centres with the administrative network for the whole State, the assessee is stated to have purchased imported PCBs, RAMs, high and low transmission wireless adaptors, wireless antennae components, flash ram software, Red Hat Linux software and other networking components. Using these components, the assessee redesigned, developed and manufactured a single product to suit the requirement of the project. As the end product was a distinct article and a marketable product, the assessee claimed deduction under Section 80 IC of the Income Tax Act. The Assessing Officer viewed that the assessee was only doing assembling work and not manufacture and hence, not eligible for deduction under Section 80 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocesses and a new commercial product emerged, which was a distinct and separate commodity, having its own character, use and name. 4. In the background of this, the Commissioner of Income Tax (Appeals), applied the decision of the Apex Court reported in 220 CTR 223 (India Cine Agencies V. Commissioner of Income Tax (Appeals) as well as the decisions reported in 2002 (11) LCX 0086 (Titan Medical Systems Pvt. Ltd. V. Commissioner of Customs) and (2010) 320 ITR 546 (SC) (CIT V. Oracle Software India Ltd.,) and allowed the assessee's appeal on the claim of deduction under Section 80IC of the Income Tax Act. 5. Aggrieved by this, the Revenue went on appeal before the Income Tax Appellate Tribunal, which agreed with the view of the Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue has not placed any fresh material either before this Court or before the Authorities below that the manufactured item was no different from the inputs that were used in bringing out a totally different marketable product. 8. It may also be pointed out that in the decision reported in 220 CTR 223 (India Cine Agencies V. Commissioner of Income Tax (Appeals)), the Apex Court pointed out that conversion of jumbo rolls of photographic films into small flats and rolls in desired sizes would amount to manufacture or production, eligible for the benefits under Section 80 HH and 80-I of the Income Tax Act. Going by the decision of the Apex Court reported in (2010) 320 ITR 546 (SC) (CIT V. Oracle Software India Ltd.,) and applying the same on th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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