IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 06.08.2008 CORAM: THE HONOURABLE MR.JUSTICE K.RAVIRAJA PANDIAN AND THE HONOURABLE MR.JUSTICE P.P.S.JANARTHANA RAJA Tax Case(Appeal) Nos.1160 to 1162 of 2008 and M.P.Nos.1 of 2008 M/s.Computer Graphics Limited "Sanas", 46, T.T.K.Road Alwarpet Chennai – 600 018. .. Appellant in all T.Cs -vs- The Assistant Commissioner of Income Tax Company Circle IV(2) Chennai – 600 034. .. Respondent in all T.Cs TAX CASES in T.C.(A) Nos.1160 to 1162 of 2008 are filed under Section 260 A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras 'A' Bench, dated 30.4.2008 passed in ITA.Nos. 288/Mds/2006, 1052/Mds/2007 and 2314/Mds/2006 for the assessment years 2002-2003, 2004-2005 and 2003-2004 respectively, order dt.16.3.2007 in ITA 104/06-07 from the Commissioner of Income Tax(Appeals)-I, Chennai-34, order dt.8.11.2006 in ITA No.104/05-06 from the Commissioner of Income-Tax, Chennai-34, order dated 01.12.2005 in ITA No.43/05-06 of the Commissioner of Income-Tax, Chennai-34,, order dated 13.12.2006 for the Assessment year 2004-05 from the Asst.Commissioner of Income Tax, Central Circle-IV(2)(i/c), Chennai and made in PA No./GIR.No.AAACC1274F/10-C, order dated 23.2.2006 for the Assessment year 2003-04 from the Deputy Commissioner of Income Tax, Central Circle IV(2), Chennai-34 and made in PA No./GIR.No.AAACC1274F/10-C, order dated 24.3.2005 for the Assessment year 2002-03 from the Asst. Commissioner of Income Tax, Central Circle IV(2), Chennai and made in PA No./ GIR.No. AAACC1274F/10-C. For Appellant : Mr.C.V.Rajan J U D G M E N T (Judgment of the Court was delivered by K.RAVIRAJA PANDIAN,J) These are appeals are at the instance of the assessee against the order of the Income Tax Appellate Tribunal, Madras 'A' Bench, dated 30.4.2008 passed in ITA.Nos.288/Mds/2006, 1052/Mds/2007 and 2314/Mds/2006 by formulating the following common question of law: https://hcservices.ecourts.gov.in/hcservices/ "Whether on the facts and in the circumstances of the case the Income Tax Appellate tribunal was right in law in holding that the appellant was not entitled to deduction under Section 80IB of Income-tax Act 1961 on the ground that conversion of jumbo rolls into salable packets/ rolls of standard sizes was not manufacture or production of article or thing?" 2. The relevant assessment years are 2002-2003, 2004-2005 and 2003-2004. The facts, as culled out from the statement of facts are as follows: The assessee is a Company in which the public are not substantially interested. It engaged in the business of conversion of jumbo rolls of Konica colour paper, Konika graphic art film and medical X-ray films into commercially saleable packets/rolls of standard arise. Along with the returns of income filed by the appellant before the assessing officer in the relevant assessment years, the elaborate activity of conversion of jumbo rolls into salable packets, rolls of standard size was narrated in the note to drive home the point that such conversion involved manufacture or production of articles or things. The assessing officer disallowed the claim of deduction on the ground that there was no manufacture of article or thing and relied upon the decision of the Supreme Court in the case of Relish Foods (237 ITR 39). The assessee filed further appeals in respect of the relevant assessment years to the Commissioner of Income-tax (Appeals), who confirmed the disallowance and dismissed the appeal. Aggrieved by the same, the assessee filed further appeals to the Income-tax Tribunal, which by reason of the impugned common order, non-suited the appellant for the relief claimed. 3. The very same issue involved in these appeals has been considered by this Court in the assessee's own case reported in (2006) 285 ITR 84 (COMMISSIONER OF INCOME-TAX VS. COMPUTER GRAPHICS LIMITED), wherein this Court has held that the activity of converting jumbo rolls into marketable small sizes cannot be regarded as a marketing activity and as such he is not entitled to the benefit of Section 80I. 4. As there is no merit in these appeals and the above said question of law has already been answered against the assessee in the above case and also INDIA CINE AGENIES VS. COMMISSIONER OF INCOME- TAX, (2003) 261 ITR 491, these appeals are dismissed. Consequently, the connected M.P.Nos.1 of 2008 are also dismissed. Sd/- Asst. Registrar /true copy/ usk Sub Asst. Registrar https://hcservices.ecourts.gov.in/hcservices/ To 1. The Assistant Registrar, Income-Tax Appellate Tribunal, III Floor, Rajaji Bhavan, Besant Nagar, Madras -90. 2. The Commissioner of Income Tax (Appeals)I, Chennai – 34. 3. The Deputy Commissioner of Income-tax, Company Circle-IV(2), Chennai – 34. 4. The Asst.Commissioner of Income-tax, Company Circle IV(2), Chennai – 34. T.C(A) Nos.1160 to 1162 of 2008 SSV (CO) SMK/28.8.08 https://hcservices.ecourts.gov.in/hcservices/