TMI Blog2015 (12) TMI 1704X X X X Extracts X X X X X X X X Extracts X X X X ..... on parlance or in commercial terms has a distinct identity, treated as a new article and not the same as raw or standard gold in the form of bricks, biscuits or bars. As a result of the said processing a commercially different saleable product comes into existence. Jewellery has a distinctive name, character and use. It can no longer be regarded as the original commodity, has separate consumers and is a new commercial commodity. The activity of the respondent assessee amounts to ‘manufacture or production - Decided in favour of assessee. - ITA No.332(Asr)/2015 - - - Dated:- 10-12-2015 - SH. A.D. JAIN, JUDICIAL MEMBER AND SH. T.S. KAPOOR, ACCOUNTANT MEMBER Appellant by:Sh. K.V.K. Singh, DR Respondent by:Sh. Parveen Jain, Advoc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n made by the AO u/s 80IB of the Act., in view of the judgment in the case of M/s. Vasantha Co. vs. State of Madras (1963) 14 STC 696 to 701 (Mad.) wherein it was held that sugar candy is purer form of sugar and is not a new commodity made. 2. The brief facts of the case are that the assessee is in the business of making Gold ornaments from raw gold(24 Kt to 22 Kt) and during the year under consideration, had shown total sales of ₹ 28,20,43,265/- and purchases of ₹ 27,34,11,675/- and claimed deduction u/s 80IB of the I.T. Act, of ₹ 1,08,53,115/-, showing its activity as manufacture of gold ornaments. During assessment proceedings, the assessee was asked to explain and show cause as to how deduction u/s 80IB had been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... find that the issue involved in the present appeal is squarely covered by the order of this Bench of the Tribunal in ITA No.407(Asr)/2012, dated 19.02.2013, in the case of ITO Wards 2(3), Jammu vs. Sh. Sanjay Jain, Jammu (supra). The ld. CIT(A) has also followed the aforesaid order of the Tribunal. The relevant findings of the Tribunal are as follows: 4. We have heard the rival contentions and perused relevant record available with us. We are of the view that the ld. first appellate authority has decided the issue in dispute in favour of the assessee by respectfully following the various decisions rendered by the various Benches of the Tribunal and the Hon ble High Courts. For the sake of convenience, the findings of the ld. CIT(A) give ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew commercial commodity. The activity of the respondent assessee amounts to manufacture or production and, therefore, qualifies for deduction u/s 10A/10B. 4.1. Also, in the case of M/s. Tribhuwan Dass Bhimjee Jhaveri 110 TTJ 942, the Hon ble ITAT, Mumbai has held as under: Deduction u/s 80IB Allow ability industrial undertaking or branch office-Assessee s unit at Hyderabad is getting the jewellery made from Karigars at Mumbai under the supervision and control of its employees with the help of Mumbai Office (head office) of the assessee- operations carried on by the Hyderabad unit cannot be ignored merely because the Mumbai office is facilitating its activities Therefore, assessee is entitled to deduction under section 80IB in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l No.253/10-11 dated 29.02.2012. Following the above, I hold that assessee was engaged in manufacture and was entitled to deduction u/s 80IB of I.T.Act. I am not going into the issue of consistency as raised by the Ld. Representative of assessee as the matter stands decided on merits. Ground No. 1 to 6 stands disclosed. 5. Keeping in view the aforesaid findings, we are of the view that no interference is called for in the well reasoned order passed by the ld. first appellate authority, who has decided the issue in dispute in favour of the assessee, by respectfully following the decisions of the Hon ble High Court as well as ITAT, Mumbai Bench. Therefore, we uphold the impugned order by dismissing the appeal filed by the Revenue. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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