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2015 (3) TMI 20 - HC - Income TaxEligibility of deduction under Section 80HHC - activity of manual washing/chipping of quartz and feldspar - whether Feldspar while cutting and polishing undergoes any one of the processes as defined under the Explanation to the 12th Schedule? - Held that:- In the assessment order, the Assessing Officer has accepted the process as defined in the Explanation to the 12th Schedule. We find that Feldspar, as a mineral, could be exported either in the cut and polished form or in the pulverized and micronised form. It is not correct to say that cut and polished feldspar is not a mineral. The pulverized and micronised is one among the various processes provided for different types of minerals. In the same manner, cut and polished minerals, undergoing various processes as per Explanation to the 12th Schedule, is a processed mineral. The Commissioner of Income Tax (Appeals) is correct in holding that if any one of the processes specified in the 12th Schedule is satisfied, then the benefit would be automatic. In our considered opinion, the restrictive meaning given by the Assessing Officer does not appear to be correct. The Assessing Authority misconstrued the 12th Schedule and the Explanation to deny the benefit of deduction under Section 80HHC only on the wrong premise that Feldspar should be exported only in pulverized and micronised form. If such a view is taken, item (x) of 12th Schedule will become redundant and meaningless. The decision of the Supreme Court in the case of Gem Granites V. Commissioner of Income-Tax reported in (2004 (11) TMI 13 - SUPREME Court) relied on by the Revenue does not get attracted to the facts of the present case, as the said case deals with the issue pertaining to the assessment year 1987-88, which is prior to the amendment in 1991. The present cases are after the amendment in the year 1991, wherein in clause (2) (b) (ii) of Section 80HHC of the Income Tax Act, the words 'other than processed minerals and ores specified in the Twelfth Schedule' are inserted. But prior to the amendment in the year 1991, there are no words of restriction 'other than'. - Decided in favour of the assessee
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