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2006 (8) TMI 447 - ITAT MUMBAIDeductions u/s 80-IB - industrial undertaking - Manufacture Or Production - manufacture of polished and finished marble slabs, tiles, table tops etc. from imported and indigenous rough marble blocks - HELD THAT:- In the instant case, the assessee transforms rough raw marble blocks into finished polished slabs by subjecting the raw blocks to several processes like peeling, dressing, correcting natural flaws, padding, sorting, grading, shaping, sizing, polishing etc. The resultant finished product is a commercially distinct commodity having distractive name and use. This is evident from the bill of entry of purchase of raw blocks wherein the said item has been defined as ‘rough marble blocks" whereas in the sales invoice, the finished product has been described as "marble slabs polished". The units of measurement are also different i.e. the rough blocks are measured in metric tons whereas the polished marble slabs are measured in square feet or square meters. It is clear from the sample copies of purchase bills enclosed at assessee’s paper book and the copies of sales bills enclosed at assessee’s paper book. Accordingly, the processes undertaken by the assessee fulfil all the criteria/tests for constitution ‘manufacture’. We agree with the contention of the ld AR on behalf of the assessee that it has carried out manufacturing process on raw blocks. This view is fortified by the judgment in Empire Industries Ltd.’s case [1985 (5) TMI 53 - SUPREME COURT] and by the CBDT vide Circular No. 693 in which, extent of value addition involved when a rough mineral is polished has also been clarified. Accordingly, we hold that the assessee is engaged in manufacture/production of polished marble slabs, tiles, table tops, etc. in terms of section 80-IB(2)(iii) of the Act. The compliance with other conditions u/s 80-IB has not been disputed by the Revenue authorities. As such, we agree with the contention of the assessee that it is entitled for deduction under the provisions of section 80-IB of the IT Act, 1961. As a result, appeals of the assessee are partly allowed.
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