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2018 (4) TMI 1634 - HC - Income TaxEntitlement to deduction u/s 10B - proof of 'manufacture' - ITAT held that since there is no word as “for the removal of doubt” in Explanation 4 to Section 10B the said has to be held as prospective and not retrospective as claimed by the assessee - Held that:- Referring to Article by one Akiva Caspi titled as “Modern Diamond Cutting And Polishing" gives detailed process undertaken for cutting and polishing of raw diamonds. Essentially this Article aims to explain the complexities involved in the process and the sophistication required to carry out such process in order to optimize the value and quantity of the polished diamonds that may emerge out of such process. Whether carried out manually or through sophisticated machines, it is impossible to deny that the process of cutting and polishing diamonds is a complex one requiring specialized knowledge and expertise at every step. Rough unpolished diamond on one hand and cut and polished diamond on the other differ completely in appearance, value and uses. Thus this process of cutting and polishing diamonds brings into existence a new product which has totally different marketable commodity. From such Article, we gather that cutting and polishing diamonds have sparkle and definite desired shapes. Through this process thus a completely new commodity having a different market is brought into existence. In the result, question no.1 is answered in favour of the assessee. Though question no.2 is answered against the assessee, Tax Appeal is allowed in view of answer of the first question. Judgment of the Tribunal confirming the view of the revenue authorities is set aside. The assessee is held entitled to deduction under section 10B
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