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TMI Blog2015 (1) TMI 614X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal, Ahmedabad [for short "the Tribunal"] in ITA No.262/Ahd/2006, whereby the appeal filed by the revenue was dismissed by the Tribunal. 3. Tax appeal No.1261 of 2006 is filed by the assessee, challenging the judgment and order dated 12.05.2006 passed by the Tribunal in ITA No.223/Ahd/2006, whereby the appeal filed by the assessee was dismissed by the Tribunal. 4. The facts, in brief, are that the assessee is engaged in the business of offset cutting and printing. The assessee had filed its return for the assessment Year 1997-98 and claimed for deduction under Section 80IA of the Income Tax Act. However, the same was disallowed by the Assessing Officer on the ground that the printing work of various type is not a manufacturing acti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring had started on 15th September, 1996 ?" 7. Mr. Mehta, learned advocate for the revenue has submitted that the question of law involved in Tax Appeal No.1852 of 2006 is already concluded by this Court in favour of the assessee and against the revenue in Tax Appeal No.1850 of 2006 and other allied matters. 8. Mr. Shah, learned advocate for the assessee has drawn our attention to the provisions of Section 80IA(2)(v) of the Income Tax Act and submitted that the Tribunal has committed error in passing the impugned order. 8.1. Learned advocate for the assessee has relied upon the decision of the Bombay High Court in the case of Commissioner of Income Tax. Harit Synthetic Fabrics Pvt. Ltd. reported 162 ITR, 640 and the decision of the Apex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t if as a result of processing, a different and distinct commodity comes into existence, then even a process of cutting can be considered a a process of 'manufacture'. 6. In the present case, the raw materials of the assessee are paper, printing inks, plates, etc. whose characteristics are very much different from the products such as lebels, cartons, pamphlets, broachers, etc. The commercial identity of the commodity, besides name, character, function, enduse, etc., are transformed completely and the raw material looses its identity resulting into the emergence of a new product, having new and distinct commercial identity, characteristics, function and end-use. Con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IA(2)(v) 79 of the Income Tax Act, which reads as under:- "80IA(2)(v) in a case where the industrial undertaking manufactures or produces articles or things, the undertaking employs ten or more workers in a manufacturing process carried on with the aid of power, or employs twenty or more workers in a manufacturing process carried on without the aid of power. 12. The Bombay High Court in the case of Harit Synthetic Fabrics Pvt. Ltd.(supra), has observed as under:- "In the instant case, ten workmen were employed by the assessee from August, 1969, and remained in its employment at least until December 31, 1969, when the relevant previous year ended. Its fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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