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TMI Blog2011 (6) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... essment year 2003-04, 2004-05 and 2005-06. The present appeal is filed by the Revenue in respect of the impugned order relating to assessment year 2003-04 only. 2. The assessee filed return of income of Rs. 1,67,04,890/-. The case was processed and taken up for scrutiny. Notice under Section 143(2) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") was issued. 3. The assessee company is an export oriented unit and is engaged in the manufacturing of machined aluminium cylinder heads which includes cylinder heads, cylinder blocks, dies and moulds, manifolds, etc. During the assessment year 2003-04, the assessee made purchases of Rs. 4.93 crores from its sister concerns, M/s. Continental Brakes Ltd. and Rs. 5.58 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e export turnover shown by assessee. The assessee was exporting the cylinder manifold in earlier year also there is no new article thing produced by the assessee this year. In fact the newly claimed to be established unit does not have its own staff management workers employees independent machinery etc. it is totally dependent upon the parent unit-I and it is only an arrangement made by the assessee to claim the benefit of Section 10B in the guise of newly established unit at Bhiwadi when it found that its earlier claim of 10B for Gurgaon unit was expiring at the end of A.Y. 2002-03. The submission of the assessee vide letter dated 28.03.2005 where by an offer of the additional income for taxation on account of allocation of admn. finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the paper book. As a result of this process a raw casing becomes finished goods which is a marketable commodity. Therefore in my considered opinion the assessee has carried out manufacturing of an article or thing. So far as the assessing officers observations relating to certain jobs being done by sister concern does not stand in the way of assessee for claiming the exemption under Section 10B as change. If a new substance is brought into existence or if any new or different article having a distinct name, character or use results from a manufacture. Whether in a particular case manufacture has resulted by a process or not would depend on the facts and circumstances of the particular case. There is nothing in the section prevent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CEL-II would be withdrawn. ITA No.1324/2010 Page 6 of 7 6. It is also noteworthy that during the course of proceedings before the AO, the assessee also gave alternate working of the total expenditure based on total turnover of CEL-I and CEL-II and consequently reduced the claim under Section 10B to the extent of Rs. 1.00 crore approximately by relocating the expenses based on turnover. 7. The Tribunal in appeal filed by the Revenue in respect of the relevant assessment year 2003-04 and also other assessment years, namely, 2004-05, 2005-06 maintained the order of the CIT(A) in the following manner. "5. We have heard the parties and perused the material placed on record. We are satisfied that the Commissioner of Income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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