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2013 (11) TMI 1273 - AT - Income TaxEligibility for Deduction u/s 80-IC(2)(b)(ii) - Product "handicraft" OR “100% machine made/machine” - Held that:- The product manufactured by the assessee i.e. "Handicraft Items" comes within the ambit of section 80IC of the Act - The percentage of utilization of human skills through manual intervention cannot be measured because there is no objective standard to measure such involvement of human skill towards production or manufacturing of the finished goods - The articles are surely graced with visual appeal in the nature of ornamentation with an element of artistic improvement - the value added by way of human skill or craftsmanship or artisanship has not got consumed or obliterated by the use of machine and to that extent the end product can be definitely termed as 'handicraft' - The Revenue should respect the observations and findings of the ITAT or it may proceed for further legal remedy against the earlier orders of the Tribunal – Following Unison Hotels Ltd. Versus Deputy Commissioner of Income-tax, Circle 18(1), New Delhi [2012 (8) TMI 258 - ITAT DELHI]. appellant has undertaken substantial expansion within the meaning of section 80- IC(8) (ix) stands settled in the first year of such claim of deduction u/s 80-IC of the I.T. Act - the criteria of substantial expansion has been accepted to be fulfilled in the first year of such claim of deduction u/s 80IC in A.Y. 2004-05 – Decided against Revenue.
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