Law:

Section:

Section 80-I of the Income-tax Act, 1961 - Deductions - Profits and gains from industrial undertaking, etc. after certain dates/infrastructure undertakings - Whether, processing of film and printing photographs from negatives amounts to a manufacturing activity and is an industrial undertaking eligible for benefit of section 80-I - Held, yes FACTS The assessee was engaged in the business of developing photographs snapped in film rolls and printing them. The Assessing Officer rejected the assessee's claim for deduction under section 80-I. However, on appeal, the Commissioner of Income-tax (Appeals) set aside the order of the Assessing Officer, which, on appeal before the Tribunal at the instance of the Revenue, was confirmed. On appeal : HELD It is a settled law that the expression "manufacture" involves the concept of changes effected to a basic raw material resulting in the emergence of, or transformation into, a new commercial commodity. But, it is not necessary that the original article or material should have lost its identity completely. All that is required is to find out whether as a result of operation in question, a totally different commodity had been produced. [Para 4] In the instant case, a negative film roll fitted had been exposed and produced as a distinct article, viz., photograph and such photograph could not be called as a negative film and thus negative film lost its identity completely, after the same had been developed and had also become a totally different commercial commodity having its own identity/character and a product of end use. As a result, such process amounted to a manufacture. Hence, the assessee, having engaged themselves in manufacturing process, was entitled to deduction under section 80-I. [Para 5] Thus, there was no error or infirmity in the order of the Tribunal and the same required no interference. Since there was no substantial question of law arising for consideration, the appeal stood dismissed. [Para 10] CASES REFERRED TO CIT v. Prasad Productions (P.) Ltd. [2001] 249 ITR 502 (Mad.), CIT v. Prasad Film Laboratories (P.) Ltd.[1997] 225 ITR 348 (AP), CIT v. Laxmi Art Studio [2001] 249 ITR 710 (Raj.) andCIT v. Jamal…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492