2014 (1) TMI 26

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....N. R. S. Ganesan (Judicial Member).- This appeal of the Revenue is directed against the order of the Commissioner of Income-tax (Appeals)-II, Kochi, dated February 25, 2011 and pertains to the assessment year 200506. 2. The only issue arises for consideration is deduction under section 80-IB of the Act. 2. Smt. Susan George Varghese, the learned Departmental representative submitted that ....

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....ed the claim of the taxpayer under section 80-IB of the Act. 3. On the contrary, Shri R. Krishnan, the learned representative for the taxpayer submitted that manufacturing of masala is a meticulous process involving several stages. According to the learned representative, the taxpayer is procuring raw materials which include nuts, megs, cloves, turmeric, chilly, coriander, ginger, etc. The taxp....

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.... till packing, meticulous processings are involved in manufacturing masala. Therefore, according to the learned representative, the entire process amounts to "manufacture". The learned representative further submitted that the taxpayer is producing different kinds of masala for both vegetarian and non-vegetarian products. Referring to the decision of the decision of the Mumbai Bench of this Tribun....

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....ferent spices as inputs would amount to manufacturing and such a process is eligible for deduction under section 80-IB of the Act. The Commissioner of Income-tax (Appeals), after considering the decision of the Tribunal in Dy. CIT v. Sri Sai Roller Flour Mills P. Ltd. [2010] 2 ITR (Trib) 490 (Hyd) and the judgment of the apex court in Aspinwall and Co. v. CIT [2001] 251 ITR 323 (SC) held that manu....