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2014 (6) TMI 259 - HC - Income TaxConversion of granite boulders into small pieces of different sizes - Activity amounts to manufacture or not – Held that:- Following CIT v. Mysore Minerals Ltd. [1999 (9) TMI 10 - KARNATAKA High Court] - extraction and processing of iron ore did not amount to manufacture - after extraction of iron ore, various processes involve production within the meaning of section 32A(2)(b)(iii) of the Act, thus, the assessee is allowed to have the benefit of investment allowance u/s 32A - the word "production" is wider in ambit and it has a wider connotation than the word "manufacture" - while every manufacture can constitute production, every production need not amount to manufacture. 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 - in the commercial world, products are quite different in terms of trade though both the materials could be used in the construction activity - The products manufactured by the assessee have distinct and different utility- the identity is also different - 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 - all the products are different though come from the same raw-material - both processes are present, i.e., manufacture and also production – the Tribunal was justified in confirming the orders of the CIT(A). Entitlement for deduction u/s 80HH and 80I of the Act – Held that:- Following CIT v. Mandideep Eng. and Pkg. Ind. P. Ltd. [2006 (4) TMI 75 - SUPREME Court] - 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, 80-I and 80-IB, if claims are made for deductions by the 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 the 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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