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2017 (11) TMI 107 - AT - Income TaxClaim of deduction u/s 80IA - indulgence in manufacturing activity - converting the S.S. Sheets into S.S. casserole containers - Held that:- The manufacturing process involved in converting the S.S. Sheets into S.S. casserole containers, clearly establishes bringing into existence a new product having a distinctive name, character, and use. We are persuaded to subscribe to the observations of the CIT(A) that the S.S. fabricated parts which are made by the assessee from the S.S. sheets, are the result of transformation from S.S. Sheets which is different in size, shape, contour and utility, is a entirely a commercially different product, distinct from the raw material, and as such falls within the four corners of the term ‘manufacture’. That still further on the basis of the material made available on record by the assessee, we find that the assessee during the year under consideration had employed more than 10 workers in the process of manufacturing carried on by him with the aid of power. We are thus of the considered view, that as the assessee had cumulatively satisfied both of the requisite conditions contemplated u/s. 80IB(4), therefore the CIT(A) had rightly observed that the assessee stood duly entitled towards claim of deduction under the aforesaid statutory provision. We thus further find ourselves to be in agreement with the ld. A.R. that in light of the settled position of law, now when the assessee had been held as eligible and therein entitled towards claim of deduction under the aforesaid statutory provision for the preceding years, viz. A.Y. 2005-06 and A.Y. 2006-07, therefore unless the said relief granted in the said preceding years in which such claim was made and accepted is withdrawn or set aside, the A.O cannot be allowed, to hold a different view and disentitle the assessee from claim of the deduction under the same statutory provision during the year under consideration. We thus in light of our aforesaid observations finding no reason to take a different view, therefore uphold the order of the CIT(A) that the assessee stood duly entitled for claim of deduction u/s. 80IB(4). - Decided in favour of assessee.
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