1 ITXA4006.09.sxw IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION KJ INCOME TAX APPEAL NO.4006 OF 2009 AND INCOME TAX APPEAL NO.4007 OF 2009 Commissioner of Income Tax-3 )..Appellant Vs. Airline Financial Support Services (India) P.Ltd)..Respondents ---- Mr. Vimal Gupta for the appellant. Mr. F.B.Andhyarujina Senior. Counsel @ Mr.S.G.Dalal for the respondents. ---- CORAM : J. P .DEVADHAR & MRS.MRIDULA BHATKAR,JJ DATE : 18/1/2011. PC 1 Three questions of law are raised by the Revenue in these appeals, which are as follows :- 1 Whether on the facts and in the circumstance of the case and in law the Hon’ble Tribunal was right in allowing the expenditure incurred by the Assessee company on renovation and improvement of lease-premises amounting to Rs. 6,67,269/- as revenue expenditure even though such 2 ITXA4006.09.sxw expenditure was clearly capital in nature ? 2 Whether on the facts and in the circumstance of the case and in law the Hon’ble Tribunal was justified in allowing the claim of the Assessee for exemption u/s.10A of the Income Tax Act ? 3 Whether on the facts and in the circumstance of the case and in law the Hon’ble Tribunal was right in holding that the processing of data on computers and presenting the results as reports, invoices, etc., would constitute manufacturing activity so as to confer the status of industrial undertaking on the Assessee Company within the meaning of Sec.10A of the Income Tax Act ? 2 Counsel for the Revenue fairly states that as regards question no.1, the same is answered against the Revenue by the decision of this Court in the case of CIT Vs. Airlines Financial Support Services (India) Pvt. Ltd., decided in Income Tax Appeal No.3162 of 2009 decided on 20 th September, 2010 . Accordingly, first question cannot be entertained as the same is already answered against the Revenue. 3 As regards question nos.2 & 3 are concerned, Section 10A as it stood at the relevant time provides that the assessee who manufactures or processes articles would be eligible for 3 ITXA4006.09.sxw exemption. This Court in the case of CIT Vs. Emirates Commercial Bank Ltd., reported in [2003] 262 ITR 55 (Bom) has held that the data processing is an activity of processing. Thus the decision of the Tribunal holding that the activity of data processing is entitled to exemption under Section 10A cannot be faulted. 4 In this view of the matter, we see no merit in both the Appeals. Appeals are dismissed. (MRS.MRIDULA BHATKAR,J) (J.P.DEVADHAR,J)