Commissioner Of Income Tax & Another v. M/S Beam Flash Lights (P) Ltd

IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL Income Tax Appeal No. 10 of 2008 Commissioner of Income Tax & another. ………. Appellants Versus M/s Beam Flash Lights (P) Ltd. ………. Respondent With Income Tax Appeal No. 9 of 2008 Commissioner of Income Tax & another. ………. Appellants Versus M/s Beam Flash Lights (P) Ltd. ………. Respondent Mr. Hari Mohan Bhatia, Advocate for the appellants. JUDGMENT Coram: Hon’ble Barin Ghosh, C.J. Hon’ble Servesh Kumar Gupta, J. BARIN GHOSH, C. J. (Oral) CBDT issued an Instruction on 24[th] October, 2005. Thereby, it instructed the Department not to file appeals, in the event, amount involved is less than what had been mentioned in the said Instruction. On 26[th] July, 2007, a modification was made to the Instruction dated 24[th]October, 2005. In terms thereof, even if monetary involvement is less than the amount specified in the Instruction dated 24[th] October, 2005, there was no bar to prefer an appeal, when the case involved substantial question of law of importance. In the instant cases, the monetary involvement in the appeals was less than the amount mentioned in the Instruction dated 24[th] October, 2005. In the circumstances, the Tribunal has refused to accept the appeals. 2. In the present appeals, it is being contended that there was involvement of substantial question of law of importance. That, according to the appellants, is, whether or not, making a new product by mere assembly of different parts, packaging and labeling of product, amounts to manufacturing activity and qualify for deduction under Section 80IC of the Income Tax Act, 1961? 3. Assembly of different parts is a manufacturing activity, has been pronounced not only by this Court, but by many other courts. Accordingly, in the appeals, there was no substantial question of law and, accordingly, the appeals did not come within the modified Instruction discussed above. The appeals fail and the same are dismissed. G (Servesh Kumar Gupta, J.) 31.05.2013 (Barin Ghosh, C. J.) 31.05.2013