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2013 (7) TMI 286 - AT - Income TaxDeduction u/s 80IB - manufacture - profits earned on manufacturing of Engineered Floor Board at industrial unit at Silvasa - Held that:- The decisions relied upon by the revenue to disallow the claim are distinguishable on facts as the case of Lucky Matemat (1996 (2) TMI 26 - RAJASTHAN High Court) wherein assessee was mining lime stone and selling it, there was neither any manufacturing activity nor any processing involved. Hence, the case is distinguishable on acts. Also the decision of Gem India [2000 (12) TMI 7 - SUPREME Court] also has now been rendered inapplicable because, the legislature has introduced the definition of manufacture in the statute book, which was earlier not there. Though the meaning is for the purposes of section 10B, but explanation 4 introduced from 01.04.2004, it says, "for the purpose of this section, "Manufacture or produce" shall include the cutting and polishing of precious and semi- precious stones". This, in effect has rendered the decision of Gem India ineffective. Since the raw material purchased by the assessee & the finished product marketed by it as brought by the assessee for examination it is found that raw material has under gone a major change and value addition and a distinct marketable product assessee is eligible for the claim of deduction under section 80IB. In favour of assessee.
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