TMI Blog2014 (2) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... gainst Revenue. - ITA No. 705/Del/2013, ITA No. 706/Del/2013 - - - Dated:- 14-8-2013 - Shri U. B. S. Bedi And Shri S. V. Mehrotra,JJ. For the Appellant : Shri T. Vansanthan, Sr. DR For the Respondent : None ORDER Per Bench Both these appeals have been filed against the two separate orders of Ld. CIT(A), XXIII, New Delhi dated 21.11.2012 for the Assessment Years 2008-09 and 2009-10 respectively. The issue is common in both these appeals and, therefore, for the sake of convenience both the appeals are being disposed off by this common order. As the facts are identical in both the years, we refer to the facts as obtaining in assessment year 2008-09. 2. Brief facts of the case are that the assessee firm is a 100% export u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cutting and sizing them does not amount to manufacture or production of article for the purpose of 80 HHC of the Income-tax Act, 1961. Our case is squarely covered by this judgment of Hon'ble Supreme Court. iv. Circular No. 693 dated 17.11.1994 and circular No. 729 dated 01.11.1995 of the CBOT are no help to our assessee because they were brought to give deduction U/s 80HHC to the polished granite so that value addition before export is high and to discourage export of raw blocks where value addition is low. These two circulars of the CBOT have never talked about the fact that the polishing of granite is a manufacturing activity for the purpose of sections 80IA, 80IB or lOB of the Income-tax Act, 1961. v. The judgment of Hon'ble Rajasth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ps only after all the processing on it. Similarly, granite remains granite after all the works on it. viii. In Sacs Eagles Chicory Vs. CIT 255 ITR 1789 (SC), the assessee claimed that the conversion of chicory roots into powder is a manufacturing activity but the Hon'ble Supreme Court gave the verdict against the assessee that the same is not a manufacturing activity. ix. In CIT Vs. Gem India Manufacturing Co. 249 ITR 307 (SC), the conversation of raw diamonds into cut and polished diamonds was not treated as manufacture or production by Hon'ble Supreme Court. x. Section lOB was amended and substituted by Finance Act, 2000. Before the amendment, the manufacture and production have been defined. Here, the production has been defined on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 and 30.9.2010 respectively. A detailed finding has been recorded by the CIT(A) after dealing with all the case laws referred by the Assessing Officer and after referring to more recent judicial pronouncements wherein the concept of manufacture or production has been elaborately dealt with, particularly with reference to the case of Arihant Tiles Marbles 320 ITR 79 (SC). Moreover, the orders of the CIT(A) XXIII have been upheld by the Hon'ble Tribunal, Delhi Bench, by order dated 30.9.2009 for the Assessment Year 2006-07, and by order dated 20.10.2010 for the Assessment Year 2007-08. Respectfully following the above judgments of the ITAT in the appellant's own case, it is held that the appellant is entitled to the claim of exemption unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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