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2013 (10) TMI 8 - HC - Income TaxDeduction u/s 10B of the Income Tax Act – whether printing of textbooks is eligible activity for claiming exemption u/s 10B - Reassessment u/s 147/148 - Held that:- Section 10B applies to 100% export oriented undertaking engaged in export of articles, things or computer software - The words “articles” and “things” are wide and by no stretch it can be said that the petitioner does not produce an article or a thing. After receipt of manuscripts from abroad, the petitioner has to do type setting, make/process/print on paper and then bind printed pages into books. Thus, a new product, distinct and separate from the bare manuscripts takes shape and gets a physical shape in form of books. Books are an article or a thing and the process involved is certainly production, if not manufacture – Decided in favor of Assessee. Reliance has been placed in the case of A. Mukherjee and Company Private Limited [1977 (9) TMI 26 - CALCUTTA High Court], wherein it was held that a publisher of books should be a manufacturer of books it is wholly unnecessary for him either to be an owner of a printing press or to be a book-binder himself. A paper is not a book, though it is printed on papers. A publisher may get the books printed from any printer but the printer is not the manufacturer but a mere contractor. The findings of the Tribunal in our opinion conclusively show that the assessee was carrying on the activity of manufacturing and also of processing of books which are also goods – This judgment does not support the Revenue - reassessment notice quashed - Decided in favor of assessee.
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