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M/S. India Cine Agencies vs Commnr. Of Income Tax, Madras on 12 November, 2008

4. On consideration of submissions put forth by the parties before us, we find that the only issue involved in the present appeal is whether making of dal from chana, toor and masur is a manufacturing activity or not? The stand of the Revenue is that no new item, article or thing is coming into existence, therefore, no manufacturing is involved whereas the claim of the assessee is that it is a specialized process with the aid of machinery and the end product is commercially new and distinct product. We find that the Tribunal in the aforesaid order has already discussed the issue in detail after deliberating upon various decisions cited by both sides including the offquoted decision from Hon'ble Apex Court in the case of India Cine Agencies vs. CIT (2008) 175 Taxman 361 (SC) and Computer Graphics Ltd. vs. ACIT (2009) 10 308 ITR 96 (Mad) wherein even conversion of jumbo rolls into saleable rolles/smaller rolls was held to be manufacturing. The process of claimed manufacturing has also been discussed in the impugned order like, mixing and weighing, grading and sorting, watering and oiling, drying, dehusking, splitting and sorting & polishing etc. and thereafter weighing and packaging. If the totality of facts are analysed, we find that the end product is altogether commercially different item from the raw material.
Supreme Court of India Cites 24 - Cited by 81 - A Pasayat - Full Document

Commissioner Of Income-Tax vs Relish Foods on 16 March, 1989

Likewise, in the case of CIT v. Relish Food with respect to deduction u/s 80HH, the assessee was engaged in peeling and freezing of shrimps. Since there was no essential difference between raw shrimps and frozen shrimps it was held that the assessee was not entitled to special deduction. In the case of Aqua Minerals Private Limited for the production of demineralised water it was held that there is no 7 manufacturing within the meaning of section 80I. Likewise in the DXN Herbal Mfg. (India) (P) Limited, filing of mushroom power in gelatin capsules to make it fit for marketing it was held that it is merely a process which does not amount to manufacture or production of any commercially distinct commodity so as to fulfill conditions stipulated u/s 80IB of the Act.

Tata Consultancy Services vs State Of Andhra Pradesh on 5 November, 2004

While coming to this conclusion, the Hon'ble Apex Court relied upon the decision in Tata Consultancy Services Vs. State; 271 ITR 401, United States vs. International Paints Company (35 CCPS 87, CAD 76) and Gramophone Company of India Limited v. Collector of Custom; 114 ELT 770 (SC) and affirmed the decision of the Hon'ble Delhi High Court in 293 ITR 353.
Supreme Court of India Cites 44 - Cited by 230 - S B Sinha - Full Document
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