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2021 (8) TMI 662 - MADRAS HIGH COURTDeduction u/s 10B - Whether the Tribunal was right in deleting the legal issue of manufacture without considering the specific omission of the clause by Legislature u/s.10B? - HELD THAT:- As decided in M/S. JANANI HOLDINGS [2013 (12) TMI 1718 - ITAT CHENNAI] even the activity of cutting and sizing of marble blocks after excavation would not come within the ambit of expression 'manufacture' or 'production'. In the circumstances, this Court held that the assessee was not entitled to the benefit of section 80HH of the Income-tax Act. This Court distinguished the judgment of the Rajasthan High Court in the case BEST CHEM AND LIMESTONE INDUSTRIES PRIVATE LIMITED [1992 (12) TMI 3 - RAJASTHAN HIGH COURT] as engaged in the business of extracting limestone and its sale thereafter converting it into lime and limedust or concrete which was held to be an activity of manufacture or production. The activity of conversion into lime and limedust, according to this Court, in the case of Lucky Minmat (P.) Ltd [2000 (8) TMI 6 - SUPREME COURT] certainly constituted a manufacturing process. It was clarified in the said case that mere mining of limestone and marble and cutting the same before it was sold will not constitute 'manufacture' or 'production' but conversion into lime and limedust could constitute the activity of manufacturing or production. This distinction has not been taken into account by the Department while rejecting the claim of the assessee(s) for deduction under section 80-IA - Decided against the revenue.
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