TMI Blog1993 (8) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness attracts the provisions of section 44AC and section 206C of the Income-tax Act, 1961 and whether the appellant is carrying on trading activity which means buying and selling timber without involving any processing of the timber. 2. A copy of registration certificate issued by the Directorate of Industries and Mines, Udyog Bhavan, Panaji, dated 22-3-1988 is filed on record. The Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is true that the assessee used to purchase the timber from various departments. If the timber is purchased from the various departments and directly sold to third party without processing it then in that case the profit is to be estimated at fixed rate of 15 per cent applying the provisions of section 44AC as well as section 206C. 3. The assessee apparently purchased the timber from the vario ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record prove that the timbers were purchased for the purpose of manufacturing articles or things and not for trading purpose. It was informed by the Assessing Officer himself not to collect the tax at source under section 206C of the Act in respect of items specified in para 2 of his letters. If the appellant was purchasing the timber and directly selling it to the third party, in that event, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l appearance or chemical combination or otherwise by artificial or natural means and in its more complicated form involves progressive action in performing, producing or making something. 'Manufacture' is transformation of an article which is commercially different from the one which is converted. The essence of manufacture is the change of the object to another for the purpose of making it mark ..... X X X X Extracts X X X X X X X X Extracts X X X X
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