TaxTMI 
TaxTMI 
2019 (3) TMI 223
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....ross appeals filed by the assessee, the appellant before us, and the revenue, by the Income Tax Appellate Tribunal (in short 'Tribunal'). 2. Heard Mr.T.Suryanarayana for King & Patridge, learned counsel for the appellant and Mr.M.Swaminathan, learned Senior Standing Counsel assisted by Ms.Pushpa and Ms.Premalatha, learned counsels for the respondent. 3. This Court vide order dated 26.11.2008 admitted the following substantial questions of law for determination in the respective assessment years: T.C.(A)Nos.1813, 1815, 1818 to 1820 of 2008: (Assessment Years 1994-95, 1991-92, 1998-99, 1990-91, 1993-94, 1992-93) Whether the Tribunal is right in law in disallowing the claim of deduction under Section 80....
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....y, mandatory for the allowance of deduction under Section 80 HH of the Act. Despite the appellants' objection explaining the nature of activity carried out by the plant, the claim was rejected on the ground that the activity carried on amounted only to 'processing' and not 'manufacture'. 6. The appellant was successful in appeal before the Commissioner of Income Tax (Appeals) (in short 'CIT (A)') who applied the ratio of the decision of the Madras High Court in the case of CIT v. Tamil Nadu Heat Treatment and Fetting Services (P) Limited (238 ITR 529) in support of his decision to accept the claim of the assessee. 7. In further appeal by the Revenue, the order of the CIT (A) was reversed by the Tribunal after an el....
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....like tyre cord, warp sheets, synthetic ducks, products of conveyor belting where the dimentional stability is not important criteria. Further only after the said products are dipped and heat set, they are compatible for rubber adhesion, synthetic warp sheets or synthetic industrial fabrics are used in products where dimentional stability is an important criteria. Also synthetic products are not compatible with rubber. So the fabrics are dipped in a chemical solution namely resouncinol, formaldehyds and alter combination to make them compatible with rubber. This also enhances rubber adhesion. Fabric is dipped in the above solution and heat stabilised by employing 3 techniques namely time, temperature and Tension in the mach....
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....he aforesaid facts, this court held that the process amounted to manufacture. 13. Likewise, in the present case, untreated yarn/grey fabric could not be put to use in products involving the use of rubber, such as tyres and conveyor belts sans the treatment in the dipping plant and the series of processes has thus, in our view, resulted in a product that is distinct in terms of commercial use. 14. The case of Nilgiri tea relied on by the Tribunal is distinguishable on facts. The Bench, in that case, was concerned with the blending of various teas. It is evident that a blend of tea would still continue to be tea and can be consumed as such either prior to or subsequent to such blending. It is for this reason that the Bench concluded tha....
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....ction under section 80HH of the Act, arising in Tax case (A) Nos.1813, 1815, 1818 to 1820 of 2008 in relation to Assessment Years 1994-95, 1991-92, 1998-99, 1990-91, 1993-94 and 1992-93 respectively is held in favour of the assessee and against the Revenue. 18. The second substantial question of law relates to the disallowance of a contribution made by the assessee to a Labour Welfare Association, and arises in Tax case (A) Nos.1813 to 1817 of 2008 (Assessment Years 1994-95, 1991-92, 1995-96 and 1998-99). 19. The Appellant had claimed certain amounts paid to the Labour Welfare Association as allowable under Section 37 of the Act. The Assessing Authority was of the view that the amounts were not permitted allowances in terms of Section....
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....ii) Madurai Labour Welfare Association (iv) United India Insurance Company as Insurance Premium. We are concerned in this appeal only with the contribution made to the Death Relief Fund as the authorities have accepted the allowability of the other contributions made. We are of the view that the contribution made by the employer to the Death Relief Fund is also an allowable business expenditure in terms Section 37 of the Act in so far as the expenditure is incurred wholly and exclusively for the welfare of its employees and is for the purposes of the business. Similar contributions made by the assessee towards labour welfare have been accepted by the revenue and no distinguishing features have been brought out before us to persuade us to ta....