2013 (11) TMI 733

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....The Income Tax Officer, Nahan (HP) during the assessment of the respondent-firm for assessment year 2004-2005, disallowed the deduction under Section 80IB claimed by the respondent. The assessee took the matter in appeal before the Commissioner of Income Tax (Appeals), Shimla which in turn affirmed the finding recoded by the first authority. The Income Tax Appellate Tribunal, however, in the appeal filed by the assessee, reversed the finding recorded by the two Authorities below and concluded that the assesse was entitled to deduction under Section 80 IB. For doing so, the Appellate Tribunal took into account the manufacturing process of rubber crumbs. The same is as under:- "MANUFACTURING PROCESS OF RUBBER CRUMB PURCHASE OF OLD TYRES/SCR....

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.... The three Judges Bench of the Apex Court in the case of Aspinwall and Co. Ltd. v. Commissioner of Income Tax 2001 (251) ITR 323, has expounded thus:    ....."The word "manufacture" has not been defined in the Act. In the absence of a definition of the word "manufacture" it has to be given a meaning as is understood in common parlance. It is to be understood as meaning the production of articles for use from raw or prepared materials by giving such materials new forms, qualities or combinations whether by hand labour or machines. If the change made in the article results in a new and different article then it would amount to a manufacturing activity." 6. In the latest decision of the Apex court in the case of Income Tax Officer ....