2012 (3) TMI 240

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....?" 2. The issue arises in the following factual background. The assessee is engaged in the business of manufacturing home-care products; including perfume sprays, such as air fresheners; room fresheners as also polish spray; rust removers, etc. On the income derived from such activity, the assessee for the A.Y 2004-05, claimed deduction under Section 80IB of the Income Tax Act, 1961 ("Act" for short). The Assessing Officer however, rejected claim on the ground that the activity carried on by the assessee does not amount to manufacturing or production of "an article" or "thing" within the meaning of Section 80IB(3) of the Act. 3. Assessee carried the matter in appeal. CIT(A) by detailed order, examined the process carried on by the ass....

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.... the pressure exerted by the propellant. The containers are so designed so as to render the same suitable for fitting of 1-inch Aerosol valves. (B)  Pre-mix Preparation : This stage of manufacturing process involves mixing of different chemicals i.e., the product constituents according to pre-determined formulation. The chemicals used for preparing pre-mix formulation are various Chemicals like Aromatic industrial chemicals (which in loose terms are also known as perfumes/fragrance), Iso-Propyl Alcohol, etc. In some of the processes the chemicals viz., Triethylene Glycol, Propylene Glycol can also be added as additional ingredients, depending upon the individual formula of the pre-mix as per the requirement of each manufacturer. ....

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....air. (G)  Weighting : Filled Tin cans are weighed for ensuring uniform quantity of filling. (H)  Water Bathing : These filled and sealed containers are water bathed to ensure that there is no leakage in the gas filled containers.  (I)  Sealing : The containers filled with product pre-mix and fitted with valve are sealed with the help of sealing machine. (J)  Packing : Thereafter these containers are tested for valve, a protective cap is placed on the valve and then the same are taken up for packing. 6. From the above, it can be seen that for bringing into existence the air fresheners as a commodity which could be sold in the market, the assessee had to undertake several steps noted above. ....