2006 (2) TMI 101

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.... J.-Heard. The above appeal is directed under section 260A of the Income-tax Act, 1961, against the order of the Income-tax Appellate Tribunal Madras "A" Bench, dated May 22, 2003 in I.T.A. Nos. 433, 1856/Mds/95. The facts in brief are: The assessee-company is engaged in the activity of processing tobacco for others. This is known as thrashing. The assessee filed its return of income on Decembe....

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....filed the above appeal and raised the following substantial questions of law: "1. Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the assessee is entitled to deduction under section 80HH? 2. Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the thrashing and redrying of tobacco leaves amounts to manufacture....

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....g work and was not involved in manufacture, the process is a manufacturing process when it brings out a complete transformation in the original article so as to produce a commercially different article or commodity. That process itself may consist of several processes. The different processes are integrally connected which results in the production of a commercially different article. If a commerc....

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....erries made them undergo nine processes to give them the shape of coffee beans. The final produce was absolutely different and separate from the input. The change made in the article resulted it a new and different article which was recognised in the trade as a new and distinct commodity. The coffee beans had an independent identity from the raw material from which they were produced. Conversion o....