Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (4) TMI 341 - ITAT HYDERABAD

2016 (4) TMI 341 - ITAT HYDERABAD - TMI - Disallowance of claim of deduction u/s 10B - eligibility of additional depreciation - Held that:- As the business of the assessee is proved beyond doubt that it involves in the manufacturing activities, in the result, it is eligible to claim deduction u/s 10B as well as it is eligible to claim additional depreciation, as the same was eligible to be claimed by those assessee's who are in the business of manufacture or production of any article or thing. H .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Hyderabad, both, dated 06/12/2014 for AYs 2010-11 and 2011-12. As identical issues are involved in both these appeals, they were clubbed and heard together, therefore, a common order is passed for the sake of convenience. 2 . To dispose of these appeals, we refer to the facts involved in AY 2010-11 being ITA No. 236/Hyd/2014. 3. Briefly the facts of the case are that the assessee filed the return of income for the AY 2010-11 on 30/09/2010 declaring a total income of ₹ 4,99,57,490/- under .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Act by stating that the extraction and processing of granite block is not a manufacturing activity as mere extracting and cutting of granite will not constitute manufacturing and also opined that the assessee company do not have leased quarry on the date of granting of 100% EOU permission on 08/09/2006. The AO also mentioned that the quarry leased to the assessee company was earlier awarded to Victorian Granite Pvt. Ltd. which is sister concern of the assessee company. Therefore, the AO held th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

a manufacture and the assessee company was engaged in the business of manufacturing and therefore is subject to levy of excise duty. It was further submitted that in the absence of any specific finding given on the nature of the granite blocks exported, it was not correct on the part of the AO to come to the conclusion that the assessee has partly exported rough/dressed granite blocks and partly cut granite slabs and that it does not tantamount to manufacture or production. 6. After considering .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

appeal: 2. The ld. CIT(A) erred in holding that the assessee is eligible for exemption u/s 10B of the Act. 3. The ld. CIT(A) should have appreciated that the granite block which is cut from the larger formation continues to remain granite only and the fact labour and skill required to remove the block from the larger mass and transporting the same, cannot be regarded as either manufacturing or production. 8. Ld. DR relied upon the order of the AO and submitted that ld. CIT(A) should have apprec .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lowing cases: 1. Madhucon Granites Ltd. in ITA Nos. 666/Hyd/10 and others, order dated 28/12/2012. 2. Madhucon Granites Ltd. in ITA No. 1908/Hyd/14 and others, order dated 22/01/2016. 10. We have heard the rival submissions and perused the material facts on record as well as the orders of revenue authorities. We have also carefully gone through the orders of the coordinate bench in the case of Madhucon Granites Ltd. We find that the issue is squarely covered by the decision of the coordinate ben .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of the Act as they find mention in 12th Schedule of Income-tax Act, 1961. On the reason that it was mentioned in the director's report that the Assessee has exported only rough blocks of granite, according to the Department the Assessee is not entitled for deduction u/s. 80HHC of the Act. It is also submitted before us by the DR that the Assessee has described in the sales invoices rough granite. However, it was clarified by the Assessee that granite has been processed into blocks and dress .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

red sized and exporting the same, it is to be and it has to be concluded that the Assessee is engaged in "production". In similar circumstances, the Bombay High Court in the case of CIT vs. Fateh Granites Pvt. Ld. (314 ITR 32) (Bom) held that the activity of cutting, polishing and sizing of granites would be covered within the meaning of expression "production". Therefore, the Assessee is entitled to the benefit u/s. 80HHC/ l0B of the Act. Further, the Chennai Bench of this T .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

u/s.l0B of the Act on the reason that granite has not been polished. Being so, the Assessee is entitled for deduction u/s. 80HHC/ l0B of the Act on similar lines for the A.Ys. 2000-01 to 2004-05. Accordingly, the Revenue appeals in ITA No. 29 to 33/Hyd/2012 are dismissed. 8. For the assessment year 2006-07 in ITA No. 35/Hyd/12, the issue is relating to allowability of deduction u/s. l0B of the Act which is decided on similar lines as above as discussed in the above, the Revenue appeal is dismiss .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ranite blocks exported, however, he made amends in the order for AY. 2011- 12 and allowed the deduction in all the granite blocks being exported by Assessee, subject to examination of eligibility of Ongole unit. This unit is also established much earlier and Assessee was allowed deduction on this unit also upto AY. 2006-07. Consequently, the direction of the CIT(A) asking the AO to examine the eligibility of Ongole unit is superfluous. Therefore, allowing Assessee s ground on this issue, we dire .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the assessee s claim of additional depreciation of ₹ 89,51,641/-, the AO observed that the additional depreciation of ₹ 89,51,641//- claimed by the assessee u/s 32(1)(iia) on plant and machinery, mining equipment etc. are not eligible since the assessee is not involved in the business of manufacture or production of an article or thing. He opined that the additional depreciation was to be allowed for an assessee who is engaged in the business of manufacture or production of any artic .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version