TaxTMI 
TaxTMI 
2012 (9) TMI 683
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of brevity we are passing consolidated order. Similarly, as the grounds are common in the assessee's appeals, we are passing a consolidated order therein. For the sake of convenience, we are passing common order covering all the nine appeals heard by us. 2. The grounds of appeal taken in all the six appeals by the department are common, which are as under: 1. On the facts and in the circumstances of the case and in law the Ld.CIT(A) erred in allowing the claim of deduction u/s 80IA & 80IB based on the decision of Hon'ble ITAT 'I' Bench, Bombay in the case of M/s. Hindustan Pencil Ltd. 2. On the facts and in the circumstances of the case and in law the Ld. CIT(A) failed to appreciate that the judgment of M/s Hindustan Pencil Ltd. i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....essment years 2006-07 and 2007-08 are not in the purview of the said instructions. 4. The AR further pointed out that the basis of filing of the present appeals and keeping the issue alive in all the cases of the assessee, was that the department had filed appeals before the Hon'ble Bombay High Court against the decision of the co-ordinate Bench in the case of Patel Stationers Pvt. Ltd., which was followed by the CIT(A) in allowing relief to the assessee. The AR pointed out that vide order dated 21-02- 2011, the Hon'ble Bombay High Court has dismissed the appeal filed by the department in the case of Patel Stationers (P) Ltd., meaning thereby that the order of the ITAT has become final. 5. The AR, therefore, submitted that under both ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of the sharpeners, which is as under: In Umergaon Unit, the assessee is also engaged in the assembling of sharpeners. For assembling of sharpeners, the process involved and the finished products emerges, are as under: Activity Assembling of Sharpeners TYPES OF MATERIAL Sharpener Body Sharpener Blades Sharpener Screws DETAILED PROCESS OF ASSEMBLING AND PACKING 1) Sharpener Body, blades & screws are sent to the Assembly Department. 2) The worker assembles the screws & blades with the body: 3) Then the sharpener is tested with pencils & sent to the Packing Dept. 4) Each single sharpener is packed in a sleeve. 5) Then the sleeves are packed in inner. FINISHED PRODUCT Sharpeners The assembling o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he components which were used in the process. The assessee was entitled to special deduction under section 80IB". We, find from the production process chart, as reproduced by the AO in the assessment order that the "final marketable product" can be procured, only after going through a production line, which is different from the individual pieces of raw materials that have to be put together. We find no merit in the argument of the DR that it is a "simple manual process", which does not qualify for the deduction. It is so, because a manufacturing process shall always remain a manufacturing process even if that "simple process" brings into existence a distinct marketable product, and once a distinct product comes into being, by way of name, ....