TMI Blog2014 (6) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... stinct and different utility- the identity is also different - If boulder could be used for the purpose of foundation, M Sand and crushed metal granite, cannot be used for the same purpose for which boulders are used - all the products are different though come from the same raw-material - both processes are present, i.e., manufacture and also production – the Tribunal was justified in confirming the orders of the CIT(A). Entitlement for deduction u/s 80HH and 80I of the Act – Held that:- Following CIT v. Mandideep Eng. and Pkg. Ind. P. Ltd. [2006 (4) TMI 75 - SUPREME Court] - if various deductions are independent in nature available to an assessee under different circumstances, they all have to be allowed if they come within the application of a particular provision of law – in terms of sections 80HH, 80-I and 80-IB, if claims are made for deductions by the assessee in the same year at the same time, if it is found relevant for the purpose of giving deductions, all are to be extended - It does not depend upon the existence of other provision - if the benefit is extended under one provision, the assessee cannot be denied the benefit of other provision which is altogether for a d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turing process nor it produces any article or thing changing the nature of the raw material. The assessee, aggrieved by the said opinion of the Assessing Officer, took up the matter before the first appellate authority-Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) allowed the appeal of the assessee following the decision of the Tribunal in Panchayil Industries (I. T. A. Nos. 336, 337 338/Coch/2002) and directed the Assessing Officer to allow the deductions claimed by the assessee. Aggrieved by the said order of the first appellate authority, the Revenue went before the Tribunal challenging the order of the Commissioner of Income-tax (Appeals). The Tribunal following the law laid down in the case of Deputy CIT v. Poabson Granite Products P. Ltd. in I. T. A. No. 495/Coch/2004 dated August 4, 2005, and Panchayil Industries (I. T. A. Nos. 336, 337 338/Coch/2002), confirmed the opinion of the Commissioner of Income-tax (Appeals) rejecting the claim of the Revenue. Aggrieved by the same, the Revenue is before this court contending that the activity carried on in the crushing units of the respondent-assessee can neither be called as manufacturing ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee was engaged in extraction and processing of iron ore, not amounting to manufacture or production of any article or thing. The High Court, in that case, while dismissing the appeal preferred by the Revenue, held that extraction and processing of iron ore did not amount to 'manufacture'. However, it came to the conclusion that extraction of iron ore and the various processes would involve 'production' within the meaning of section 32A(2)(b)(iii) of the Income-tax Act, 1961, and, consequently, the assessee was entitled to the benefit of investment allowance under section 32A of the Income-tax Act. In that matter, it was argued on behalf of the Revenue that extraction and processing of iron ore did not produce any new product whereas it was argued on behalf of the assessee that it did produce a distinct new product. The view expressed by the High Court that the activity in question constituted 'production' has been affirmed by this court in Sesa Goa's case [2004] 271 ITR 331 (SC) saying that the High Court's opinion was unimpeachable. It was held by this court that the word 'production' is wider in ambit and it has a wider connotation than the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be categorised as amounting to manufacturing or producing an article. In that context, their Lordships opined that whether manufacture can be stated to have taken place or not, has to be seen from the test whether the commodity which is subjected to a process can no longer be demanded as original commodity but is a new and distinct commodity. They further opined that the word manufacture would ultimately mean there is existence of new goods by the process which may or may not involve manufacture. When the above is the settled position as of now one has to see the actual process that is undertaken so far as the respondent-unit is concerned. The activity normally carried on by the respondent-unit has the following process : 1. Digging holes using jackhammers and air-compressors and blasting for producing boulders. 2. Breaking of boulders using mechanical rock breakers to produce rubbles. 3. Loading the rubbles to the tipper lorries using excavator loader. 4. Feeding the rubbles from the tipper lorries to the primary crushers for producing soilings. 5. The soilings produced at the primary crushers are fed to the different secondary crushers through conveyor belts to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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