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2012 (10) TMI 806 - AT - Income TaxExercising jurisdiction u/s 263 by CIT(A) - re assessee assessee's claim under section 10B - ‘live plants’ produced by the assessee through tissue culture the same was concerned with “live article” or things - AO allowed the claim - Held that:- The assessee’s business activity of tissue culture is ‘manufacture or produces’ within the meaning of section 10B(2)(i) and CIT had wrongly held that since assessee’s produce is “plant”, which is a lively object, therefore, it is covered by section 2(29)(BA), as CIT (A)has not proceeded on the correct factual and legal interpretation of section 2(29BA) qua facts and circumstances of the instant case as where the assessee is involved in tissue culture, which can in no way be called any activity other than ‘manufacture or produce’ because one mother plant is tissue cultured, which gives rise to production of voluminous number of plants by artificial processes and stages AO in finalizing the assessment had rightly granted the assessee deduction under section 10B. It was one of the ‘possible view’ as per law, which could not be revised by CIT under section 263. Consequently, once the assessee’s unit is entitled to be treated to be a qualifying unit under the provision of section 10B(2)(1) the order of the Commissioner of Income Tax revising the assessment does not withstand the test of the law - in favour of assessee.
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