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Section 80-IB of the Income-tax Act, 1961 - Deductions - Whether activity of conversion of raw fish into tinned fish for consumption would amount to 'manufacture' under section 80-IB - Held, no FACTS The assessee was engaged in manufacturing of tinned fish. It had been filing returns and claiming deduction under section 80-IB for the assessment years 1996-97 to 2003-04. It was only for the assessment year 2004-05 that its case came to be examined by the Addl. Commissioner by exercising his powers under section 144A. Pursuant to the directions given by the Addl. Commissioner under section 144A, the Assessing Officer completed the assessment under section 143(3) and disallowed the deduction claimed by the assessee under section 80-IB holding that as a result of processing undertaken by the assessee, no commercially different and distinct commodity had been produced and therefore the process undertaken by the assessee could not be held to be amounting to 'manufacture or production of an article or thing' under section 80-IB. On appeal, the Commissioner (Appeals) held the activities involved in conversion of raw fish into tinned fish as 'manufacturing' and, thus, the assessee was held to be entitled to deduction under section 80-IB. On revenue's appeal, the Tribunal upheld the order of the Commissioner (Appeals). On revenue's appeal : HELD In the light of facts and circumstances of the assessee's activities and also in the order of the Assessing Officer and in the light of the settled legal position, it was to be held that the assessee was engaged in processing and not manufacturing and, as such, was not eligible for deduction under section 80-IB. [Para 17] As regards the assessee's submission that the department had been accepting the returns filed by it and allowing the deduction for the previous years and, so, was estopped from doing so on the principle of consistency, it might be stated that it was only during the relevant year that the case of the assessee came to be examined by the higher authorities at appropriate level. The examination of the case of the assessee in the relevant year was not confined to the factual matrix of the previous years, but was an…

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