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2012 (4) TMI 73 - AT - Income TaxDeduction u/s 80-IC - Rule 8 of the ITAT's Rules - the assessee has pleaded two more issues in ground Nos. 7 & 8, wherein it has challenged the selection of its case for scrutiny assessment and non-service of notice under sec. 143(2) of the Income-tax Act, 1961within the statutory time period - Whether manufacturing of fragrances, fragrant compound, attar and other floral waters at its undertaking at Bhimtal amounts to manufacture within the meaning of definition of expression "manufacture" provided in section 2(29)(BA) of the Income-tax Act, 1961 - In order to avail deduction under section 80IC, an assessee has to fulfill the conditions contemplated in the section - The assessee has not manufactured any article or thing, which provided in thirteenth schedule. It is situated in Industrial Estate, thus it falls in section 80IC(2)(ii) of the Act - it is concluded that as far as geographical location of the assessee is concerned, it falls within the industrial estate specified for the purpose of admissibility of deduction under sec. 80-IC of the Act Regarding manufacture - The stand of the revenue authorities is that at the most activity carried out by the assessee is of blending one. It has just mixed the floral distillate from Kannouj and no new or distinct product has emerged out - learned counsel for the assessee has placed in the written submissions a flow chart exhibiting the activities carried out by the assessee before producing altogether distinct saleable commodity which has its own identification in the commercial world - he moment there is transformation into a new commodity commercially known as a distinct and separate commodity having its own character, use and name, whether be it the result of one process or several processes 'manufacture' takes place and liability to duty is attracted - assessee contended that its undertaking is registered with Excise Department, however, excise duty is exempt by virtue of notification Nos. 49 and 50 of 2003 - Decided in favor of the assessee by way of direction to allow the deduction
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