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2017 (10) TMI 1641 - AT - Income TaxDisallowance of the additional depreciation on the cost of wind mill - assessee was not engaged in the manufacture or production of any article or thing - submission that the assessee is processing garnet sand and assessee had purchased a wind mill and had claimed additional depreciation in respect of the same - CIT(A) had allowed the assessee’s claim of additional depreciation on the ground that the provisions of Sec.2(29BA) defining the term ‘manufacture’ introduced w.e.f. 01.04.2009 provided for any change in a non-living physical object resulting in transformation of the object into a new and distinct object having a different name, character and use HELD THAT:- A perusal of the decision relied upon by the AO in the Assessment Order shows that the decision related to assessment years before the amendment to Sec. 2(29BA) providing for the definition of term ‘manufacture’. Admittedly, the process involved in the conversion of the beach sand into garnet sand as has been extracted of the Ld.CIT(A) clearly shows that the process is one of manufacture. This view of ours also find support from the decision of Sesa Goa Ltd. [2004 (11) TMI 14 - SUPREME COURT] Further, it is noticed that the Revenue has granted the benefit of deduction u/s. 80HHC for the AY 2003-04. Thus, even without the definition of the term manufacture u/s. 2(29BA), the Revenue has been holding that the assessee is doing the business of manufacturing. Now, to hold that the assessee is not doing manufacturing only for the purpose of denying the benefit of additional depreciation is not permissible. In these circumstances, we find no error in the findings as arrived at by the Ld. CIT(A) and consequently, it stands upheld.Appeal filed by the Revenue stands dismissed.
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