2013 (8) TMI 983

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..... 2. The only issue in this appeal of revenue is against the order of CIT(A) deleting the disallowance of deduction u/s. 80IB of the Act. For this, revenue has raised following ground: "That the Ld. CIT(A-1, Kolkata has erred in law and facts by not relying upon the Apex Court decisions in the cases of (i) Sacs Eagles Chicory Vs. CIT (2002) 255 ITR 178. (ii) Collector of Central Excise Vs. Kutty Flush Doors and Furniture Company (P) Ltd. AIR 1988 SC 1164 Which were the basis of disallowing the deduction u/s. 80IB of Rs. 1,74,99,674/-, against the claim made by the assessee during the course of assessment." 3. At the outset, the Ld. counsel for the assessee filed a copy of Tribunal's order in assesse....

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....ctured in a scientific and systematic manner with the use and assistance of sophisticated plant and machinery acquired at a substantial cost. Poultry feed is recognised not only by trade and commerce but also by the statutory authorities under Central Excise, Sales Tax etc as independent products Applying the ratio laid down in judicial decisions discussed in the order of CTT(A) we have no hesitation in holding that the assessee is engaged in manufacture or production of an article, contemplated in Sec 801B (2) (iii) . 16. We also find on the identical facts the Bangalore Bench of ITAT in the case of Komrala Feeds -Vs- DCIT 74 ITD 65 held that activity of producing poultry feed amounts to manufacture and therefore eligible for dedu....

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.... (4). Once the Central Government notified the poultry 'feed industry u/s 80 IB (4) then there is a tacit admission that it is engaged in "manufacture or production of an article". This is so because unless poultry feed industry does not manufacture an article; no deduction can be permissible u/s 80 IB. Once the Central Govt. accepted in principle that poultry feed is an eligible industry u/s 80IB(4); then the very same industry cannot be considered as non manufacturing industry under sub sections (3) and (5) of Sec 801B. With reference to same set of facts the revenue cannot hold the poultry feed industry as manufacturing industry if situated in North Eastern states and a 'processing industry" if situated in any other states Such an interp....