TMI Blog2012 (9) TMI 683X X X X Extracts X X X X X X X X Extracts X X X X ..... decided in favour of assessee Deduction u/s 80IA – Whether the “assembly” of sharpeners would qualify for the deduction u/s 80IA - Assembling of sharpener is a totally manual process and no machinery is required for the same – Held that:- Following the decision in case of Chiranjjeevi Wind Energy (2011 (1) TMI 421 - MADRAS HIGH COURT), there is no merit in the argument of AO that it is a “simple manual process”, which does not qualify for the deduction. It is so, because a manufacturing process shall always remain a manufacturing process even if that “simple process” brings into existence a distinct marketable product, and once a distinct product comes into being, by way of name, character and use, it would definitely qualify to come u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lenged by the revenue before the Hon ble High Court. Appeal should also be filed in line with the precedence of other assessment years in the same ground. 3. On the facts and in the circumstances of the case and in law the Ld.CIT(A) erred in allowing assessee s claim of 80IA deduction in respect of Umergaon unit wherein it was conclusively proved that all the conditions laid down in sec. 80IA(2) were not fully adhered to. 4. For these and other grounds that may be urged at the time of hearing, the decision of CIT(A) may be set aside and that of the AO restored. 3. At the time of hearing, the Authorised Representative for the assessee made a preliminary objection on the maintainability of four out of the six appeals filed by the depart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heard the AR, both on the preliminary objections and the merits and have also perused the case of Patel Stationers (P) Ltd. We find merit on both the grounds and we agree with the AR that so far as assessment years 1998-99, 2000-01, 2001-02 and 2003-04 are concerned, the department s appeals fail under both the circumstances, i.e. maintainability and dismissing of the appeals by the Hon ble Bombay High Court u/s 260A filed against the base order of Patel Stationers (P) Ltd. and so far as assessment years 2006-07 and 2007-08 are concerned, the appeals fail on account of dismissing of the appeal u/s 260A filed by the department in the case of Patel Stationers (P) Ltd. 8. In the result, all six appeals filed by the department are dismissed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the import of certain case laws cited by the AR also from inclusion of the definition of the word manufacture in the statute books. The A.R. placed before us, the copy of judgment of Hon'ble Madras High Court in the case of CIT v/s Chiranjjeevi Wind Energy Ltd. reported in 243 CTR 195, wherein the Hon'ble Madras High Court has held (Headnote), The different parts procured by the assessee by themselves cannot be treated as a windmill. Those different parts bear distinctive names and when assembled together, thereafter it gets transformed into an ultimate product which is commercially known as a windmill There can, therefore, be no difficulty in holding that such an activity carried on by the assessee would amount h manufacture as w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imple manufacturing process within the ambit of section 80IA, the legislature has provided one of the conditions, i.e. where the production is done manually and not guided with the help of power, subject to certain conditions which need to be fulfilled. 12. On these observations, respectfully following the decisions cited by the AR, we are inclined to agree with him and allow the appeals. We, therefore, set aside the order of the CIT(A) in all the three impugned years on this issue and direct the AO to allow the claim of deduction u/s 80IA , as claimed by the assessee. The appeals filed by the assessee for assessment years 1998-99, 2000-01 and 2001-02, are therefore, allowed. In the result, Department s appeals in I.T.A. No.4775/M/1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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