TMI Blog2014 (12) TMI 1210X X X X Extracts X X X X X X X X Extracts X X X X ..... aw diamonds in a superior commodity”. In the light of the above, we set aside the order of the CIT(A) and direct the AO to adjudicate and pass fresh order of assessment and adjudicate on the claims as made by the assessee on merits and as an law. - ITA No. : 2504/Mum/2004 , ITA No. : 2817/Mum/2004 - - - Dated:- 22-12-2014 - Shri N.K. Billaiya, Accountant Member, And Shri Vivek Varma, Judici ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the case of CIT vs Gem India Manufacturing Co., reported in 249 ITR 307. 4. Aggrieved the assessee approached the Hon SC and filed Special Leave Petition (SLP) under Article 136 of the Constitution of India, which was admitted by the Hon ble Supreme Court of India and while disposing of the CA No. 9936 of 2011, the Hon ble Supreme Court observed, Heard learned counsel on both sides. Lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Commissioner of Income Tax vs. Gem India Manufacturing Company, reported in [2001] 249 I.T.R. 307, may not be correct for the simple reason that, in that case, the Revenue succeeded as Gem India Manufacturing Company was not able to demonstrate the process undertaken by it to convert raw diamonds into a superior commodity. Moreover, the High Court has also not gone into that aspect. The High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his instance, the AR submitted that in the light of the order of Hon ble Supreme Court, if the assessee is afforded an opportunity, it shall prove to the revenue authorities that the claim of deduction u/s 80IB was genuine and correct and that the assessee had employed detailed and sophisticated machinery to convert diamond in the rough and rock form, to a piece of precious jewellery. The AR also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ht of the above, we set aside the order of the CIT(A) and direct the AO to adjudicate and pass fresh order of assessment and adjudicate on the claims as made by the assessee on merits and as an law. 10. Since we have set aside the order of the CIT(A) with the direction to the AO to pass fresh order of assessment de novo, the appeal as filed by the department is treated as allowed for statistica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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