Itta/538/2012 Of Commissioner Of Income Tax -Ii v. M/S. Rk Hair Products P. Ltd

THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE Ms. JUSTICE G. ROHINI I.T.T.A. No.538 OF 2012 Date: 16.07.2013 Between: Commissioner of Income Tax-II,Visakhapatnam. ….Appellant And M/s. R.K.Hair Products P.Ltd., Visakhapatnam. …Respondent THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAAND THE HON’BLE Ms. JUSTICE G. ROHINI I.T.T.A. No. 538 of 2012 ORDER:(Per the Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta) We have heard Sri S.R.Ashok, learned senior counsel for the appellantand gone through the impugned judgment and order of the learned Tribunal. On the perusal of the impugned judgment and order of the learnedTribunal, we have noticed only one point that is whether in the facts andcircumstances of the case, the assessee was entitled for deduction underSection 10B of the Income Tax Act or not? The learned Tribunal on appreciation of the fact and also consideringvarious judgments of the Supreme Court on this issue came to the conclusionthat the assessee has undertaken the manufacturing process i.e., wig,hairpieces, pre bonded strands and weft hairs, which are completely differentand distinct from the original raw material. The assessee actually purchased large human hair to manufacture wigs and other hair wear products. Onappreciation of the fact it was found by the Tribunal that there has been amanufacturing process and it emerges completely distinct and new product. Therefore, deduction has to be allowed under Section 10B of the Act. Hence, we do not find any infirmity or illegality in the impugned order. Accordingly, the appeal is dismissed. _____________________ K.J. SENGUPTA, CJ Date: 16.07.2013KLP/ES ______________ G. ROHINI, J