1986 (6) TMI 64

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ssessee is carrying on job work for M/s Mukund Iron and Steel Ltd. The Assessee's customers M/s Mukund Iron and Steel Ltd. supply rough castings to the assessee for carrying out some job work like grinding, smoothing and levelling of the surface. After carrying out the work, the assessee returns the articles of M/s Mukund Iron & Steel Ltd. For this type of work of fabrication the assessee installe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rder of the ITO with a direction that he will reframe the assessment afresh according to law. 4. The assessee is aggrieved and has come up in appeal before us. Shri V.H. Patil, ld. counsel of the assessee vehemently objected to the order of the CIT under s. 263. According to him the issue is squarely covered by the decision of the Madras High Court in the case of Perfect liners vs. CIT (1983) 1....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the AAC. On a reference the High Court held that the word "manufacture" has to be understood in a wide sense. After the rough casting was polished, the product was a new product which was utilised as component in internal combustion. Similar point came up for consideration before the Special Bench of the Tribunal in the case of Thiagaraja industries and on similar facts the Tribunal held that the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... placed on our record, we see merit in the appeal. The assessee in this case is doing a job work of fabrication of engineering goods, grinding and other similar type of work. Identical case came up before the Tribunal (Special Bench) in the case of Thiagaraja Industries. The Special Bench carefully examined the various activities undertaken by the assessee and eventually held as follows: "The f....