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2015 (8) TMI 37 - AT - Income TaxDisallowance of the deduction claimed u/s 80IC - CIT(A) allowed claim - Held that:- CIT(A) who has deleted the entire addition made by the Assessing Officer on the ground that the predecessor CIT(A) had on merits found out for assessment year 2008-09 that the assessee company is eligible for deduction under Section 80-IC of the Act. Nowhere in the impugned order we find any observation or finding of the learned CIT(A) commenting on the validity of the reopening of the assessment proceedings under Section 147/148 of the Act. Since the ground does not arise from the impugned order, we are unable to state whether the said ground can survive. The ld CIT(A) rightly observed that it is well settled that every change or process cannot be termed as manufacture or production. Well known test applied for determining whether a process amounted to production/manufacture are that a new and distinct commercial product emerges. Commonly accepted meaning given to the word manufacture as held in the judgements by the Hon'ble supreme court is when a new and different article emerges having distinctive name, character and use. After applying the tests laid down in the different judgements and taking guidance from the definition of manufacture in the act, having noted the process involved, the learned CIT(A) rightly held that the assessee company is entitled to deduction u/s 80-IC of the Act. The Assessing Officer has not made any comments with regard to the certificates given by the Government of India, Ministry of Commerce and Industries, and Excise Authorities of the State has not commented upon adversely by the AO. Just because survey team has reported that only 20 people were working in the unit cannot brush aside the evidence that has been placed on record. Taking into consideration the corroborative evidence, we concur with the view of the learned CIT(A) and we find no infirmity in the same. - Decided in favour of assessee. Reopening of assessment - Held that:- CIT(A) who has deleted the entire addition made by the Assessing Officer on the ground that the predecessor CIT(A) had on merits found out for assessment year 2008-09 that the assessee company is eligible for deduction under Section 80-IC of the Act. Nowhere in the impugned order we find any observation or finding of the learned CIT(A) commenting on the validity of the reopening of the assessment proceedings under Section 147/148 of the Act. Since the ground does not arise from the impugned order, we are unable to state whether the said ground can survive.We are constrained to note that the learned CIT(A) has not adjudicated on the reopening made by the AO under Section 147/148. He has deleted the addition made on the ground that his predecessor CIT(A) in chair had deleted the same on merits. Therefore, we do not find any merits in the grounds raised before us. In any case since, we have already up held the finding and decision of the Ld CIT(A) for assessment year 2008-09, that the assessee company’s Rudrapur Unit is engaged in manufacturing and is therefore eligible for deduction under Section 80-IC of the Act, so we uphold the orders of the learned CIT(A) and dismiss the grounds raised by the Revenue - Decided in favour of assessee.
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