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2019 (3) TMI 1104 - HC - Income TaxEntitlement to deduction u/s 80IA/80IB - "Manufacture or production" or not? - conversion of Paddy into Rice treated as a manufacturing activity - HELD THAT:- definition of the word “Manufacture” though was not available in the Assessment Years before us upto 2003-2004, but the said definition embodies the concept of transformation of object or article into different commercial article as was discussed in several judicial pronouncements from time to time. If a different commercial article comes into existence as understood by the persons who deal with those things, a different approach need not be taken by the Courts of law to hold otherwise. The dehusked Paddy and Rice obviously are not sold on the same rate nor can they be consumed for same purpose in the same form. Therefore, the process of dehusking of Paddy into Rice with the aid of labour and machinery is definitely an industry activity undertaken by the Assessee. It would depend upon the context in which the words “Manufacture or production” have to be interpreted by the Court of law. In the present case, the context is whether the industrial activity in the form of dehusking of Paddy into Rice amounts to Industrial undertaking engaged in the 'Manufacture or production' of Rice or not. In the said context, in view of the aforesaid cases, we find no reason to hold that the activity of dehusking of Paddy into Rice will not amount to "manufacture or production". We do not find justification to give a narrower meaning to these terms, which, by themselves independently or jointly as employed in the said provisions of Section 80IA are wide enough to cover the industrial activity undergone by the Assessee - the Assessee is entitled to the benefit of deduction under Section 80 IA - Decided against revenue.
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