TMI Blog2010 (3) TMI 934X X X X Extracts X X X X X X X X Extracts X X X X ..... s Tribunal vide order dated July 18, 2008. This is the second round of litigation as far as the appeals for the assessment years 2001-02 to 2005-06 are concerned. The assessee is a sole proprietorship concern in the name and style of M/s. Raj Impex India Ltd. In the earlier round of litigation, this Tribunal, vide its order dated July 18, 2008 in I. T. A. Nos. 189 to 193/Mds/2008 has remanded the matter in paragraphs 5 and 6 as under : "5. We further find that upon the assessee's appeal, the learned Commissioner of Income-tax (Appeals) adjudicated only upon the assessee's claim of the product being manufactured for the purpose of section 10B and allowed the assessee's claim. The learned Commissioner of Income-tax (Appeals) did not go in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a finding in this regard. Further, in our opinion, the learned Commissioner of Income-tax (Appeals) should also give a finding on the alternative claim of the assessee regarding section 80HHC deduction in accordance with the hon'ble High Court's order. We draw support here from the decision of the hon'ble Supreme Court in the case of Kapurchand Shrimal v. CIT [1981] 131 ITR 451 (SC) wherein it was held as under (headnote) : 'It is well known that an appellate authority has the jurisdiction as well as the duty to correct all errors in the proceedings under appeal and to issue, if necessary, appropriate directions to the authority against whose decision the appeal is preferred to dispose of the whole or any part of the matter afresh, unless ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 10B, which was remanded by this Tribunal vide order dated July 18, 2008, the learned Commissioner of Income-tax (Appeals) has again not given any finding on this particular fact. Accordingly, we remit the issue again to the record of the learned Commissioner of Income-tax (Appeals) for giving a finding on this particular fact by a speaking order. As far as the issue pertaining to whether the activity to be treated as "manufacture" or not is concerned, we have heard the learned Departmental representative as well as the learned authorised representative and considered the relevant records. The learned Departmental representative has submitted that the assessee is doing only cleaning and sorting of human hair, which cannot be classified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le human hair, after undergoing different processes of sorting out length, conversion and using of various chemicals, caustic soda, scent, detergent, shampoo, hair conditioners, etc., and thereafter the hairs are finally dyed in different colours. The hair has to be bleached to give different colours to the end product and cut in different sizes. In this process, the assessee is using various consumables, equipments and packing materials. Learned senior counsel has thus urged that the raw material used by the assessee is in a condition which cannot be directly used as a wig accessory and, therefore, the end product of the assessee is entirely different as an exportable item in the fashion industry as well as in the use of human hair wig. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ock, it becomes a slab or tile. In the circumstances, not only is there manufacture but also an activity which is something beyond manufacture and which brings a new product into existence and, therefore, on the facts of these cases, we are of the view that the High Court was right in coming to the conclusion that the activity undertaken by the respondents-assessees did constitute manufacture or production in terms of section 80-IA of the Income-tax Act, 1961. Before concluding, we would like to make one observation. If the contention of the Department is to be accepted, namely, that the activity undertaken by the respondents herein is not a manufacture, then it would have serious revenue consequences. As stated above, each of the respond ..... X X X X Extracts X X X X X X X X Extracts X X X X
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