TMI Blog2013 (11) TMI 733X X X X Extracts X X X X X X X X Extracts X X X X ..... I.T.A. No. 2 of 2009 - - - Dated:- 6-11-2013 - A M Khanwilkar And Kuldip Singh, JJ. Appellant : Mr. Vinay Kuthiala, Sr. Adv, with Ms. Vandana Kuthiala, Adv Respondent : M/s. Vishal Mohan Sushant Keprate, Adv JUDGEMENT:- PER : A M Khanwilkar Heard counsel for the parties. 2. This appeal has been admitted on the substantial question of law as to whether cutting, grinding and sieving of old rubber tyres and rubber scrap and converting the same into rubber crumbs is manufacture and hence entitled to the deduction under Section 80IB of that Act? 3. The Income Tax Officer, Nahan (HP) during the assessment of the respondent-firm for assessment year 2004-2005, disallowed the deduction under Section 80IB claimed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... market. As regards this finding of fact reached by the Appellate Tribunal, we are in agreement with the same as in our opinion, the process not only involves re-cycling of the old tyres but also rubber scrap to be converted and transformed into rubber crumb - which incidentally can be re-used for manufacture of new tyres. There is nothing to indicate that the old rubber tyres and rubber scrap could be straightway reused for manufacture of new tyres without resorting to processing, as is being done by the assessee. 5. The question as to what amounts to manufacture is no more res integra. The three Judges Bench of the Apex Court in the case of Aspinwall and Co. Ltd. v. Commissioner of Income Tax 2001 (251) ITR 323, has expounded thus: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, every production did not amount to manufacture. Further, the test for determining whether manufacture can be said to have taken place is whether the commodity, which is subjected to a process, can no longer be regarded as original commodity, but is recognized in trade as a new and distinct commodity. Further, the word production , when used in juxtaposition with the word manufacture takes in bringing into existence new goods by a process which may or may not amount to manufacture. The word production takes in all the by-products, intermediate products and residual products, which emerge in the course of manufacture of goods. 7. Keeping in mind the exposition in these decisions, we have no hesitation in holding that the Appellat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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