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2014 (3) TMI 576 - HC - Income TaxDeduction u/s 80HH and 80I - Whether the conversion of granite boulders into small pieces of different size amount to production or manufacture – Held that:- The process carried on in different units of the respondent/assessee clearly indicated that the commercial identity of the boulder which is used as raw-material to bring into existence altogether a different product, i.e. rubbles (crushed metal granite) and also 'M Sand' of different sizes - The products manufactured by the assessee have distinct and different utility - If boulder could be used for the purpose of foundation, M Sand and crushed metal granite, cannot be used for the same purpose for which boulders are used - In that sense all the products are different though come from same raw-material - Relying upon CIT v. Mysore Minerals Ltd. [1999 (9) TMI 10 - KARNATAKA High Court] - In the light of the process being undertaken which ultimately results in a different marketing product, in the units of the assessee, both processes are present, i.e. manufacture and also production – thus, the Tribunal was justified in confirming the orders of CIT(A). Deduction u/s 80HH and 80I of the Act – Applicability of Commissioner of Income-Tax Versus Gem India Manufacturing Co. [2000 (12) TMI 7 - SUPREME Court] – Held that:- The decision in Joint Commissioner of Income-tax Versus Mandideep Engineering And Packing India P. Limited [2006 (4) TMI 75 - SUPREME Court] followed - if various deductions are independent in nature available to an assessee under different circumstances, they all have to be allowed if they come within the application of a particular provision of law – in terms of Sections 80HH, 80I and 80IB, if claims are made for deductions by assessee in the same year at the same time, if it is found relevant for the purpose of giving deductions, all are to be extended - It does not depend upon existence of other provision - if the benefit is extended under one provision, the assessee cannot be denied the benefit of other provision which is altogether for a different purpose – Decided against Revenue.
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