TMI Blog2005 (5) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... no error in the order of the Tribunal allowing the benefit of sections 80HH and 80-I to the assessee in respect of refining of the oil from the oil purchased from the local market inasmuch as process of refining amounts to production as contemplated under the sections. Question is answered in the affirmative, i.e. in favour of the assessee and against the Revenue. - - - - - Dated:- 5-5-2005 - Judge(s) : R. K. AGRAWAL., RAJES KUMAR. JUDGMENT The Income-tax Appellate Tribunal has referred the following question of law under section 256(1) of the Income-tax, 1961 (hereinafter referred to as "the Act"), relating to the assessment year 1987-88 for opinion to this court: "Whether, on the facts and in the circumstances of the case, the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng authority has made a similar disallowance but in appeal, the Tribunal allowed the claim. The Tribunal held that after purchasing the oil, the same was subjected to the process or treatment and what was sold by the asses-see was not the same thing as originally purchased. For the assessment year 1986-87, the order of the Tribunal has been accepted by the Department inasmuch as no reference was filed. It is alleged that reference was not filed due to the smallness of the amount involved. Heard Sri A.N. Mahajan, learned standing counsel appearing on behalf of the Revenue. No one appears on behalf of the assessee. We have perused the order of the Tribunal and the authorities below. Under section 80HH and section 80-I of the Act, deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee from- (i) an industrial undertaking which begins to manufacture or produce articles or things or to operate its cold storage plant or plants;" In the case of B.P. Oil Mills Ltd. v. Sales Tax Tribunal reported in [1998] 111 STC 188, the apex court held that the refining of the oil amounts to manufacture. The apex court held as follows: "The word 'processing' has, however, not been defined under the Act but it has been the subject-matter of interpretation by this court in various cases including that of Chowgule Co. Pvt. Ltd. v. Union of India [1981] 47 STC 124 (SC); [1981] 1 SCC 653. Taking a cue from the definition of the word 'process' in Webster Dictionary, this court observed therein that where any commodity is subjected to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Co. [1993] 204 ITR 412, that the word "production" is much wider than the word "manufacture." It was said: "The word 'production' has a wider connotation than the word 'manufacture'. While every manufacture can be characterised as production, every production need not amount to manufacture... The word 'production' or 'produce' when used in juxtaposition with the word 'manufacture' takes in bringing into existence new goods by a process which may or may not amount to manufacture. It also takes in all the by-products, intermediate products and residual products which emerge in the course of manufacture of goods." In the case of CIT v. Sesa Goa Ltd. reported in [2004] 271 ITR 331 (SC), relying upon the aforesaid two decisions referred ..... X X X X Extracts X X X X X X X X Extracts X X X X
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