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2010 (5) TMI 55 - HC - Income TaxDeduction u/s 10B - The Assessing Officer had deleted the deduction under Section 10B by holding that cutting and processing of stone, marble, granite etc. did not amount to manufacture or production. However, the Commissioner of Income Tax (Appeals) deleted the said disallowance and the same was confirmed by the Income Tax Appellate Tribunal. - The Tribunal held that these multiple uses of the tiles produced by the assessee could not have been done by solely using the main raw material which was nothing but solid blocks of sandstone, marble or granite. It was also noticed as a fact that the end product of the assessee was a product which was commercially distinct from the primary raw material and was the result of the activity conducted by the assessee. The Tribunal also noted that the term "production" was wider than "manufacture" and even if it were to be assumed that the assessee was not engaged in a manufacturing activity, it was certainly engaged in the activity of production. The processes employed by the assessee were carried out by highly skilled and specialized workmen on the raw material and the price of the end product was many times more than that of the raw material. Consequently, it was found as a fact that the assessee was engaged in the process of production of the said tiles. Held that: Income Tax Appellate Tribunal followed its earlier decision of the assessment years 2003-2004 and 2004-2005. We are also informed that appeals preferred against the order passed in respect of the earlier assessment years have also been dismissed by this Court. - Revenue appeal dismissed.
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