Adarsh Kumar Goel, J. - (1.) THE Revenue has preferred this appeal under Section 260A of the IT Act, 1961 (in short, 'the Act'), against the order dt. 16th March, 2007 passed by the Tribunal, Delhi Bench 'I', New Delhi in ITA No. 83/Del/2005 for the asst. yr. 2001 -02, proposing to raise following substantial questions of law: (a) Whether, on the facts and circumstances of the case, the Hon'ble Tribunal was right in law in directing the AO to allow deduction under Section 80 -IA whereas the question before Tribunal was related to deduction under Section 80 -IB? (b) Whether, on the facts and circumstances of the case, the Hon'ble Tribunal was right in law in holding that process of assembling carried out by the assessee is to be understood as amounting to 'manufacture' or production of an article?
(2.) THE assessee claimed deduction under Section 80 -IB which was disallowed by the AO on the ground that assembling/job work done by the assessee did not amount to manufacturing activity, which was a condition for claiming deduction under Section 80 -IB of the Act. The CIT(A) upheld the claim of the assessee, which has been affirmed by the Tribunal. We have heard learned Counsel for the parties and perused the record. In para 2 of the appeal itself, it has been stated that the claim of the assessee was under Section 80 -IB of the Act. If claim falls under Section 80 -IB of the Act, the same cannot be disallowed on the ground that Tribunal erroneously made reference to Section 80 -IA. Question (a) cannot, thus, held to be substantial question of law. With regard to question (b), the finding recorded by the Tribunal is as under: 6. We have considered the rival submissions carefully. The crux of the dispute before us is to establish whether or not the assessee is engaged in the manufacture or production of an article or thing so as to qualify for deduction under Section 80 -IA of the Act with respect to Unit -I. Before we proceed to dilate on the legal position, it would be appropriate to understand the fact position with regard to the process being carried out in Unit -I by the assessee. The finished product of the assessee is motorcycle wheel. The raw materials/components used are: 1. Rim 2. Tyre 3. Tube
(3.) BEARING;