1 2.ITXA.5759-10 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.5759 OF 2010 The Commissioner of Income Tax-19. ..Appellant. Vs. M/s. Beta Cosmetics. ..Respondent. .... Mr. Suresh Kumar, for the Appellant. Mr. K.B. Bhujle, for the Respondent. .... CORAM : J. P. DEVADHAR & A.R. JOSHI, JJ. DATED : 30 th NOVEMBER, 2011. P.C. 1. Whether the activity of the assessee of production of perfumed hair oil by using coconut and mineral oil constitutes manufacturing activity so as to avail the deduction under Section 80IB of the Income Tax Act, 1961, is the question raised in this Appeal. 2. The finding of fact recorded by the ITAT is that the production of the perfumed hair oil as per the requirement of Hindustan Lever Ltd. constituted manufacture of a product distinct from the inputs used and on the said manufactured product the Central Excise duty has been 2 2.ITXA.5759-10 paid. The Apex Court in the case of Commissioner of Central Excise, Surat Vs. Zandu Pharmaseutical Works Ltd., reported in (2006) 12 SCC 453 has held that addition of perfume to coconut oil to produce perfumed oil constitutes a manufacturing process. Moreover in the present case it is not in dispute that the deduction under Section 80IB of the Act has been allowed to the assessee in the first year of manufacture and that order has attained finality. 3. In these circumstances, the decision of the ITAT in holding that the assessee is engaged in the manufacturing activity and hence entitled to avail deduction under Section 80IB of the Income Tax Act, 1961, cannot be faulted. Accordingly, we see no merit in this Appeal and the same is hereby dismissed. (A. R. JOSHI, J.) (J. P. DEVADHAR,J.)