TMI Blog2015 (1) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... well as by the Tribunal are reasonable and proper and do not call for any interference - the technical expert from the Ministry of Communications and Information Technology has opined that for the purpose of mounting of silicon chips on PCB special equipments like chip bonding/wire bonding etc. are required which are the same required in any IC manufacturing industry and chip bonding operation in ECB assembly is 1st part of the manufacturing process - There is nothing contrary placed on record to controvert the expert opinion given by the technical person from the department of Information Technology - since the assessee is applying the use of machinery and plant used in the semi-conductor industry, the assessee company is entitled to clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the ITAT came to be dismissed confirming the order passed by the CIT (Appeals). 3. It is the contention of the Revenue that the assessee in fact purchases by way of import semi-conductor devices such as Integrated Circuits (IC) and Mounted Piezo-Electronic Crystals, which amount to 90% of the total value of the final product i.e Electronic Circuit Board (ECB), which are fixed on the Board and they are interconnected to produce the end products i. e. Electronic circuit Board (ECB), which are used in watches. It is contended that even as per the assessee's version the semi -conductor devices used by them are not manufactured in India, which constitute 90% of the total value of the final product. Thus what the assessee is doing is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture is primarily a question of fact. It is also worth noting that during the previous 7 assessment years including those completed under section 143 (3) of the Act, the assessee has been allowed higher rate of depreciation and there was no reason quoted as to why the assessing officer was persuaded to take a different view. The findings recorded by the Commissioner of Appeals on the question of facts have been confirmed by the ITAT while turning down the appeal presented by the Revenue. 7. Learned counsel appearing for the Revenue has placed reliance on the judgment in the matter of Commissioner of Income Tax Vs. Fashion Prints Limited reported in (1996) 217 ITR 0456 (BOM): (1995) 123 CTR 0272 (BOM). 8. In the reported matter the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is entitled to deduction under that section. The department, however contended that there is no element of manufacture or processing of goods in the process of copyright. The Hon'ble Supreme Court while considering the issue has recorded a finding that the marketed copies are goods and if they are goods then the process by which they become goods would certainly fall within the the ambit of section 80-A (12) (b) r/w section 33-B because an industrial undertaking has been defined in section 33-B to cover manufacture or processing of goods. A reference is made to the decision in the matter of Tata Constancy Services V. State of A.P. reported in (2005) 1 SCC 308. The issue was as to whether the software programme put in media for trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered view that the reasons recorded by the Commissioner of Income Tax (Appeals) as well as by the Tribunal are reasonable and proper and do not call for any interference. It is also worth noting that the technical expert from the Ministry of Communications and Information Technology has opined that for the purpose of mounting of silicon chips on PCB special equipments like chip bonding/wire bonding etc. are required which are the same required in any IC manufacturing industry and chip bonding operation in ECB assembly is 1st part of the manufacturing process. There is nothing contrary placed on record to controvert the expert opinion given by the technical person from the department of Information Technology. Even otherwise, it would ..... X X X X Extracts X X X X X X X X Extracts X X X X
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