2013 (9) TMI 971

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....late Tribunal was right in holding that the disallowance of deduction of Rs.8,84,78,097/- made under Section 80 IC is to be allowed?" 2. The assessee is engaged in the business of manufacture and service of communication and networking products, mainly to State Government and Central Government undertakings. It supplied communication device to TNEB and BSNL to the extent of Rs.37.62 crores, out of the total sale of Rs.52.61 crores. In order to comply with the purchase order of Tamil Nadu Electricity Board for decentralization of various collection centres with the administrative network for the whole State, the assessee is stated to have purchased imported PCBs, RAMs, high and low transmission wireless adaptors, wireless antennae compone....

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....aster data to the empty E-Prom chip. This software loaded chip was only allowed to access the frequency with the centralized administration network of the TNEB and other customers, thus emerged as a distinct and different new product to suit the specific requirement of the particular customer. The indigenously designed and manufactured product would not be available in the market to any other person. It is stated that in the course of manufacture, the raw material/inputs used therein underwent several processes and a new commercial product emerged, which was a distinct and separate commodity, having its own character, use and name. 4. In the background of this, the Commissioner of Income Tax (Appeals), applied the decision of the Apex Co....

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....or integral structure. Even though the said amendment would not be of relevance to the assessment year under consideration, namely, 2006-2007, yet, the intention of the Revenue being very clear on the scope of the expression 'manufacture', on the findings of fact that the various materials that had gone into making of the radio frequency identification device having thus undergone a change and that they had lost their original identity, we have no hesitation in confirming the order of the Tribunal. The Revenue has not placed any fresh material either before this Court or before the Authorities below that the manufactured item was no different from the inputs that were used in bringing out a totally different marketable product. 8. It may....