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2015 (9) TMI 6 - AT - Income TaxEligibility for deduction u/s 10B - manufacturing activity or not - exporting granite blocks which were extracted from quarries and cut into dimensional blocks using wire-cutting machine - denial of exemption u/s 10B was resorted to by the AO on the premise that the process involved in the business of the assessee was removal of rock from parent rock by using wire cutting machine and thus, according to the AO, this did not amount to manufacture as defined u/s 2 (29BA) -CIT (A) allowed the assessee’s claim Held that:- After taking into account all the facts into consideration and also the ruling of the Hon’ble Supreme Court in the case of Sesa Goa [2004 (11) TMI 14 - SUPREME Court] we are of the view that, as rightly observed by the CIT (A), though the case [CIT v. Sesa Goa Ltd] was prior to amendment to insertion of s. 2 (29BA) of the Act w. E.f. 1.4.2009, the process of extraction of rock and converting it into dimensional block had resulted in transformation of the object or article or thing into a new and a distinct object or thing having a different name, character and use. Thus, the dimensional block was a different name with distinct use and character. Thus, the provisions of s. 2 (29BA) (a) of the Act [the ruling of the jurisdictional High court in the case of Puttur Petro Products P Ltd [2013 (12) TMI 251 - KARNATAKA HIGH COURT] and also the Board’s circular No.729 dated 1.11.1995] clearly show that the process involved in the case of the assessee was ‘manufacture’ as defined u/s 2 (29BA) of the Act. Therefore, the assessee was entitled for deduction u/s 10B of the Act as the assessee’s business activity amounted to manufacture or production of an article or thing as envisaged in s. 10B of the Act for both the AYs under consideration. In substance, there is no infirmity in the findings of the CIT (A) which requires our intervention. - Decided in favour of assessee.
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