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2018 (2) TMI 193 - KERALA HIGH COURTEntitlement for deduction u/s 10B - whether conversion of ungarbled pepper to be fit for human consumption amounts to production? - Held that:- We are unable to countenance assessee's contention, especially since the finding that un-garbled and garbled pepper are not two distinct commodities was not based on any specific provision in the statute. Yet again we notice that under Section 80HHC the benefit is to any industrial undertaking carrying on 'manufacture' or 'processing'. The benefit under Section 10B is to any undertaking carrying on 'manufacture' or 'production'. Hence the statute itself recognizes the distinction between “manufacture”, “production” and “processing”. A manufacture or production necessarily has to lead to a different commodity while a processing may not result in a new commodity being brought out. We, hence, decline to entertain the contention as raised by the learned Counsel. The process of garbling to make pepper edible does not give rise to a different commodity distinct from the raw pepper purchased. - Decided against assessee
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