Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2013 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (3) TMI 376 - HC - Income TaxRelief u/s 80-I - Tribunal directed the A.O. to allow the relief to assessee treating the assessee as engaged in manufacturing - whether processing of mild steel rod, bars and rounds from scrap iron amounts to manufacture within the meaning of Section 80-I? - Held that:- As decided in CIT v. Krishna Copper Steel Rolling Mills [1991 (11) TMI 223 - SUPREME COURT] the mild steel rods, bars or rounds which are manufactured by the assessees are only finished forms of the metal and not articles made of iron and steel. They only constitute raw material for putting up articles of iron and steel such as grills or windows by applying to them processes such as cutting or turning. The rod or the wire rods are likewise not products of iron and steel but only certain finished or refined forms of the metal itself & CIT Vs. Gem India Manufacturing Company [2000 (12) TMI 7 - SUPREME COURT] wherein held that cutting and polishing of diamond does not amount to manufacture and industrial undertaking is not entitled to the benefits of Section 80-I This court in Commissioner of Sales Tax Vs. M/S Tata Iron and Steel Co. Ltd. [1974 (9) TMI 83 - ALLAHABAD HIGH COURT] and Commissioner of Sales Tax Vs. M/S Om Engineering Works [1985 (11) TMI 220 - ALLAHABAD HIGH COURT] and Supreme Court in Gujarat Steel Tubes Ltd. Vs. State of Kerala [1989 (5) TMI 62 - SUPREME COURT OF INDIA] held that by galvanization iron and steel are not changed and remained iron and steel. Thus from the aforesaid discussions, it is held that industrial undertaking of the assessee which is engaged in the business of galvanizing MS Pipes, is not involved in manufacture or production of any article or thing, as such, it is not entitled for the benefits under Section 80I. The view taken by the Tribunal is illegal. The questions of law raised in these are decided in favour of the Revenue.
|