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2011 (12) TMI 93 - HC - Income TaxExemption u/s 10A/10B - conversion of standard gold into ornaments is "manufacture" or "production" of articles or things – Revenue contention -assessee had not "exported" gold ornaments as ownership does not lie with him - Held that:- Whether or not assessee's activity was manufacture or not, was independent of the question of ownership of the gold. In present case the primary gold was put to mechanical, physical and chemical process before it was converted into gold jewelery. Such conversion of standard gold into ornaments or jewelery undertaken by the assessee amounts to manufacture/production and qualifies for deduction under Section 10A/10B of the Act, if other conditions stipulated in the said Section are duly satisfied. Mere ownership is not the sole criteria to determine whether a person is an importer or exporter. A person who holds himself out as an importer or exporter is also an importer or exporter. The activity undertaken i.e. export/import is important and the person involved and associated with the said activity is important/relevant. Further the expression 'exported' or 'imported' goods has reference to the nature of the goods as in the case of expressions 'import' or 'export', and not a person/owner.-Decided in favor of the assessee.
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