TMI Blog2013 (10) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... the bare manuscripts takes shape and gets a physical shape in form of books. Books are an article or a thing and the process involved is certainly production, if not manufacture – Decided in favor of Assessee. Reliance has been placed in the case of A. Mukherjee and Company Private Limited [1977 (9) TMI 26 - CALCUTTA High Court], wherein it was held that a publisher of books should be a manufacturer of books it is wholly unnecessary for him either to be an owner of a printing press or to be a book-binder himself. A paper is not a book, though it is printed on papers. A publisher may get the books printed from any printer but the printer is not the manufacturer but a mere contractor. The findings of the Tribunal in our opinion conclusivel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lika Press (P) Ltd. for the A.Y. 2006-07 was completed after scrutiny on 25.08.2008, determining an income of Rs. 60, 07,205/-. Thereafter, it was observed that the assessee is engaged in the business of printing of text books (export as well as domestic sales) which does not made (sic) it eligible for claiming deduction u/s 108. It has been made clear in the case of Addl CIT WB-III, Calcutta Vs. A Mukherjee Co. (P) Ltd. (113 ITR 718) that a publisher may get the books printed from any printer, but the printer is a mere contractor and the publisher carries on the business of manufacturing and processing goods . A circular has also been issued by the CBDT (Circular No.347 dated 07/07/1982) on this matter. Thus the assessee is not a manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... convertible foreign exchange from export/transmission of customized electronic data by way of scanning and type setting charges. The assessee had shown domestic sales as local turnover. It is clear that the Assessing Officer was fully aware and conscious of the activities undertaken by the petitioner i.e. printing of books in India as per instructions of the overseas third parties. 8. The petitioner in objections had submitted that the reassessment proceedings have been initiated in view of the audit objections. It was a case of change of opinion‟ and the nature and character of the business activities undertaken by the petitioner were examined at the first round and the Assessing Officer was satisfied that Section 10B was applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat printing of book amounts to manufacture or production. In the present case, the Assessing Officer as per the reasons to believe had formed an erroneous legal opinion in the original assessment order. Such cases cannot be covered and cannot be made subject of reassessment proceedings under Section 147 of the Act. Appropriate remedy available to the Revenue was to initiate proceedings under Section 263 of the Act, as it is their stand that the assessment order was erroneous and was prejudicial to the interest of the Revenue. 11. Learned counsel for the respondent-assessee has drawn our attention to the full bench decision of this Court in Commissioner of Income Tax Vs. Usha International Ltd., [2012] 348 ITR 485 (Delhi) wherein, refer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eassessment proceedings will be invalid on the ground of change of opinion. 16. Here we must draw a distinction between erroneous application/ interpretation/understanding of law and cases where fresh or new factual information comes to the knowledge of the Assessing Officer subsequent to the passing of the assessment order. If new facts, material or information comes to the knowledge of the Assessing Officer, which was not on record and available at the time of the assessment order, the principle of change of opinion will not apply. The reason is that opinion is formed on facts. Opinion formed or based on wrong and incorrect facts or which are belied and untrue do not get protection and cover under the principle of change of opini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r himself. A paper is not a book, though it is printed on papers. A publisher may get the books printed from any printer but the printer is not the manufacturer but a mere contractor. The findings of the Tribunal in our opinion conclusively show that the assessee was carrying on the activity of manufacturing and also of processing of books which are also goods. 14. In the said case, the respondent was a publisher of books but did not have a printing press. He would procure manuscripts, hit upon a suitable format, get it printed from third parties under his supervision, get the book bound and put it out for sale. The Calcutta High Court dismissed the appeal of the Revenue and held in favour of the assessee therein that he was engaged in m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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