Case Law Details
M/s Sundaram Fasteners Ltd. Vs CIT (Madras High Court)- As far as placing reliance on the decision of the Apex Court in the case of Pandian Chemicals Ltd. Vs. Commissioner of Income Tax) reported in [2003] 262 ITR 278 is concerned, we do not find, the said decision, in any manner, goes against the case of the assessee. The Unit at Krishnapuram is stated to be the only unit having hot forging machine. It is stated that the assessee, based at Krishnapuram, received bolts and nuts from Padi, manufactured using cold forging. The Krishnapuram unit completes hot forging and after the process comes to Padi where there is further value addition and after assembling nuts and bolts, they are marketed.
Thus only after the process carried on by the Krishnapuram Unit, that the commodities reach a stage of marketability. The assessee states that the process of hot forging involves heating of raw materials to 1100 :C, cutting, forming and piercing. These nuts are then cooled and tapped. The nuts are then subject to head treatment and surface coating, depending on customer’s requirement to withstand higher stress. Thus given the nature of the processing done at Krishnapuram Unit, the deduction was rightly considered by the Commissioner of Income Tax (Appeals) in the assessee’s favour. We agree with the assessee’s contention.
Sundaram Fasteners Limited Vs The Commissioner of Income Tax- II
Madras High Court
DATED: 13.07.2011
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