AJAY KUMAR MITTAL, J. - (1.) THIS order shall dispose of IT Appeal Nos. 302, 303, 304, 316 and 361 of 2008, as according to learned counsel for the parties, common questions of law and facts are involved therein. For brevity, the facts are being taken from IT Appeal No. 302 of 2008.
(2.) THIS appeal has been filed by the Revenue under S. 260A of the IT Act, 1961 (in short "the Act") against the order dt. 10th Aug., 2007 passed by the Income-tax Appellate Tribunal, Chandigarh Bench "A", Chandigarh (hereinafter referred to as "the Tribunal") in ITA No. 368/Chd/2003, relating to the asst. yr. 2000-01. The appeal was admitted by this Court vide order dt. 18th Sept., 2008 for determination of the following substantial question of law : "Whether in the facts and circumstances of the case the Tribunal was right in holding that the activity of the assessee of manufacturing of identity cards amounts to 'manufacture' and the undertaking of the assessee is an 'industrial undertaking' for the purpose of S. 80-IA of the Act, and the assessee is eligible for benefit under S. 80-IA of the Act ?"
(3.) BRIEFLY stated, the facts necessary for adjudication as narrated in the appeal are that the assessee filed its return for the asst. yr. 2000-01 on 29th Nov., 2000 declaring an income of Rs. 1,30,31,964 which was processed on 25th Jan., 2001. It claimed deduction of Rs. 21,68,157 under S. 80-IA of the Act. Proceedings under S. 148 of the Act were initiated. The AO disallowed the claim of the assessee vide order dt. 5th Dec., 2002. Feeling aggrieved, the assessee took the matter in appeal before the Commissioner of Income-tax (Appeals) [in short "the CIT(A)"] who vide order dt. 7th March, 2003 upheld the order of the AO and dismissed the appeal. Being dissatisfied, the assessee approached the Tribunal by way of an appeal. The Tribunal vide order dt. 10th Aug., 2007 allowed the appeal holding that the assessee was eligible for benefit under S. 80-IA of the Act. The Revenue has challenged the said order in the present appeal.;