TMI Blog2013 (12) TMI 1210X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 10B of the Income Tax Act, during the relevant assessment years - Decided against Revenue. - Tax Case (Appeal) Nos.1118 of 2009 and Tax Case (Appeal) No.888 of 2010 - - - Dated:- 19-11-2013 - Chitra Venkataraman And T. S. Sivagnanam,JJ. For the Appellant : Mr. N. V. Balaji in both T. Cs. For the Respondent : No Appearance in both T. Cs. ORDER (The Judgment of the Court was made by Chitra Venkataraman, J.) The Revenue is on appeal as against order of the Income Tax Appellate Tribunal relating to the assessment years 2003-04, 2004-05 and 2005-06. Inspite of service of notice on the assessee, there is no representation by the assessee before this Court either in person or through a counsel. 2. The assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the definition 'manufacture' contained in Section 10B of the Income Tax Act, from 2001 which included process, the expression 'manufacture' was to be understood in the normal sense; consequently, polishing of rough granite was not a manufacture or production of an article or thing. Aggrieved by this, the assessee went on appeal before the Commissioner of Income Tax (Appeals), who accepted the plea of the assessee that cutting and polishing was manufacture. Referring to insertion of Explanation 4 below the omitted sub-section (9A) of Section 10B of the Income Tax Act with effect from 01.04.2004, as per which, the word 'manufacture' or 'produce' included the cutting and polishing of precious and semi-precious stones, the First Appellat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nue referred to the definition of 'manufacture' as existed prior to substitution under the Finance Act, 2000, with effect from 01.04.2001 and submitted by reason of the omission of such a definition, the assessee's case of processing of granites and polishing granites, could not be treated as one of manufacture for the purposes of claiming deduction under Section 10B of the Income Tax Act. Learned counsel further submitted that even under Explanation 4, the expression 'manufacture' or 'produce' defined to include cutting and polishing is with reference to precious and semi-precious stones. Thus, the polishing of granites could not be taken as amounting to manufacture. 6. We do not agree with the said submissions made by the learned Standi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accept the plea of the Revenue solely by the reason of the absence of definition of 'manufacture' under Section 10B of the Income Tax Act, during the relevant assessment years namely, 2003-04, 2004-05 and 2005-06, that the terms 'manufacture' has to be read in a restricted way that the processing could not be included within the meaning of 'manufacture'. 9. Thus, going by the decision of the Supreme Court in the case of M/s.Gem Granites vs. CIT, reported in [2004] 271 ITR 322, on the scope of the expression 'manufacture', in the absence of any specific definition, we have no hesitation in giving common man's understanding as to the scope of the expression that the expression 'manufacture' would include every process, which would ultimate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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