2012 (8) TMI 609

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....as passed :   "Heard.   Admit." 3. Section 260A of the Income-tax Act, 1961, is akin to section 100 of the Civil Procedure Code, 1908, with slight modification by insertion of one more sub-section. Section 260A of the Act provides that every appeal shall lie to the High Court only if the case involves a substantial question of law. Sub-section (3) in clear terms makes it obligatory upon the High Court while admitting the appeal to formulate the substantial question of law involved in the appeal. Sub-section (4) provides that the appeal shall be heard only on the question, so formulated by the High Court as required under sub-section (3).   4. We, however, notice that while admitting this appeal on March 1, 2000, n....

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....issued to the respondent-assessee because they have already entered appearance in this appeal pursuant to the notice already issued in this behalf in past.   8. With the consent of the parties, the appeal is also heard finally on the aforementioned two questions framed by this court for its disposal.   9. The respondent (assessee) is engaged in the business of computer data processing services and sale of computer stationery and derives its income from this business. This work they do on job work basis.   10. In the assessment years 1989-90 and 1990-91, the question arose as to whether the business activity undertaken by the assessee can be termed as industrial undertaking engaged in the business of "manufacture" wit....

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....ue in the case reported in CIT v. Professional Information Systems and Management [2005] 274 ITR 242 (Guj) ; 195 CTR 14 and, lastly, taking note of these decisions, the Supreme Court in the case reported in CIT v. Peerless Consultancy Services (P.) Ltd. [2001] 248 ITR 178 (SC) ; 164 CTR 194 affirmed the view taken in these cases.   13. In all these cases it is held that technical and industrial consultancy and processing of the data with the help of computers amounts to processing of the goods and being in the nature of manufacture hence falls within the expression "industrial undertaking" for the purpose of claiming benefits under section 80-I of the Act.   14. In the light of the foregoing discussion, we have no hesitation....