Law:

Section:

Section 80-IB of the Income-tax Act, 1961 - Deductions - Profits and gains from industrial undertakings infrastructure development undertaking Tribunal's finding that activity of assessee, engaged in business of making transformer core from Cold Rolled Grain Oriented/Cold Rolled Non-grain Oriented (CRGO/CRNO) Coils involving series of processes amounted to manufacture for purpose of claiming deduction under section 80-IB, was a finding of fact [Assessment year 2001-02] [In favour of assessee] CIT v. ALFA Lamination [2009] 225 CTR (Guj.) 212 The assessee was engaged in the business of making transformer core from Cold Rolled Grain Oriented/Cold Rolled Non-grain Oriented (CRGO/CRNO) Coils, involving a series of processes. The assessee claimed deduction under the provisions of section 80-IB. 'The Assessing Officer disallowed the claim. The Tribunal upheld the assessee's claim. Held that the findings of facts, after appreciation of evidence on record, by the Tribunal were that CRGO coils, even with a few processes, out of all the processes involved, could not be used in a transformer unless all the processes were completed, that after completion of all the processes, CRGO/CRNO coils got converted into transformer core which was the end-product which could be used in the manufacture of transformer. There was no dispute that due to various processes, the end-product, which was an input for the purpose of manufacturing transformer, had a distinct name, shape and use. After the raw material in the form of CRGO/CRNO coils and/or sheets went through all the aforesaid processes, the raw material lost its identity and a new product came into existence which was commercially distinct from the raw material on which the processes had been performed. The Tribunal had further referred to various opinions of different experts on the subject and recorded that such technical opinions should be considered on merits and though not sacrosanct, either the same should be accepted or rejected on merits, but could not be ignored. The experts had opined that various activities performed by the assessee for making the transformer core amounted to manufacturing activities and nothing was…

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