1 itxa1090-10+1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEALLOD) NO.1090 OF 2010 WITH INCOME TAX APPEAL NO.4134 OF 2010 The Commissioner of Income Tax-17 ..Appellant. V/s. M/s. Fashions Forecast (India) ..Respondent. Mr. D.K. Kamwal for appellant. None for respondent. CORAM : J.P. DEVADHAR AND MRS. MRIDULA BHATKAR, JJ. DATED : 1ST FEBRUARY, 2011 P.C. :- 1. Income Tax Appeal No.4134 of 2010 not on board. At the request of counsel for the revenue, the appeal is taken up for admission. 2. Whether the Tribunal was justified in holding that the assessee who was carrying on the business of processing grey cloth into dress material and exporting them was entitled Section 80IB deduction, is the question raised in this appeal. 2 itxa1090-10+1 3. The Tribunal has recorded a finding of fact that in the present case, the assessee purchased grey cloth and after carrying out various operations such as washing, colouring, embroidery and pressing converted the grey cloth into dress material and exported the same. The deduction under Section 80IB is allowable not only in respect of manufacturing activity but also in respect of processing activity carried out by the assessee. In this view of the matter, the finding recorded by the Tribunal that the assessee is entitled to deduction under Section 80IB cannot be faulted. Accordingly, both the appeals are dismissed with no order as to costs. (MRS. MRIDULA BHATKAR, J.) (J.P. DEVADHAR, J.)