D.C.I.T, CIR-4, KOLKATA, KOLKATA vs. M/S MADHUJAYANTI INTERNATIONAL LTD., KOLKATA

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ITA 1957/KOL/2013Status: DisposedITAT Kolkata03 August 2016AY 2006-073 pages

In favour of the Revenue: the Revenue's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal followed its Special Bench decision in the assessee's own case, which held that blending of tea constitutes manufacturing for the purpose of Section 10B. Therefore, the deduction was allowed.

What were the facts?

The assessee claimed deduction under Section 10B for blending of tea, which the Assessing Officer disallowed, holding it as not manufacturing. The CIT(A) allowed the deduction.

What were the issues?

Whether blending of tea amounts to 'manufacturing' for the purpose of claiming deduction under Section 10B of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 10B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH : KOLKATA

Before: Hon’ble Sri N.V.Vasudevan, JM & Shri Waseem Ahmed, AM]

Heard together (2 matters)

I.T.A No. 1957/Kol/2013
ITA No 1463/Kol/2007

Read from the judgment's own cause title. This page is filed under one of them.

Date of Hearing : 20.07.2016. Date of Pronouncement : 03.08.2016. ORDER Per N.V.Vasudevan, JM

This is an appeal by the assessee against the order dated 04.03.2013 of CIT(A)- IV, Kolkata relating to AY 2006-07.

2.

Grounds of appeal

raised by the revenue read as follows :- “1. Whether on the facts and circumstances of the case the ld. CIT(A) has justified in law in allowing the benefit of deduction u/s. 10B of the Act to the assessee when the assessee is engaged in blending of tea without manufacturing any new item.

2. Whether processing of tea can be considered as “manufacturing” for the purpose of section 10A/10B of the IT Act for this AY when the word “processing” has been deleted from the definition of manufacturing w.e.f. 01.04.2001.”

3. At the outset, it was observed that Assessing Officer has made disallowance of the deduction claimed u/s 10B of the Act on account of holding the activity of “blending of tea” as not manufacturing. However the ld. AR brought to our notice the decision of Special Bench of this Tribunal in assessee’s own case in dated

M/s. Madhujayanti International Ltd. A.Yr.2006-07 20.07.2012 for assessment year 2004-05 whereby it was held that the activity of blending of tea as manufacturing and consequently the deduction u/s. 10B of the Act was allowed in favour of assessee. On the contrary, Ld. DR vehemently relied on the orders of authorities below.

4.

We have heard rival submissions of both the parties and perused the materials available on record. Before us Ld. AR submitted paper book which is running pages from 1 to 140. We find that in assessee’s own case in (supra) the Special Bench has decided this issue in favour of assessee and against Revenue. Taking a consistent view, in assessee’s appeal in ITA No. 1463/Kol/2007 (supra) we dismiss this ground raised by Revenue accordingly.

5.

In the result, appeal of Revenue is dismissed.

Order pronounced in the Court on 03.08.2016.

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