1999 (7) TMI 10

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....JAYASIMHA BABU J.--The assessee is engaged in the processing of unbleached grey cloth by bleaching, calendering, dyeing and printing so as to produce printed cloth. For the assessment year 1981-82, the assessee claimed deduction under section 32A which claim was rejected by the Inspecting Assistant Commissioner who under section 144B directed the Income-tax Officer to disallow the claim. On appeal....

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....r of the assessee. In the aforementioned case, it was held by the Supreme Court that when section 33(1)(b)(B)(i) is read along with item No. 32 of the Fifth Schedule to the Income-tax Act that item being "32. Textiles (including those dyed, printed or otherwise processed) made wholly or mainly of cot ton, including cotton yarn, hosiery and rope." read together, the result is: "Where the mach....

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....s not alien to the concept of "manufacture". It was held that the processing etymologically also meant manufacturing process. In the case of Ujagar Prints v. Union of India [1989] 179 ITR 317 (SC) it was held by the Constitution Bench of the apex court that the retrospective amendments of the definition of "manufacture" in the Central Excises and Salt Act, 1944, so as to include processing was ....