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TMI Blog2005 (12) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 80J of the Income-tax Act, 1961? 2. Whether, the finding of the Appellate Tribunal that the initial year in the case of the assessee for getting benefit under section 80J was the assessment year 1971-72 is legally sustainable? 3. Whether, on the facts and in the circumstances of the case, the assessee is entitled to relief under section 80J for the assessment year 1976-77?" The matter relates to the assessment year 1976-77. M/s. Kanodia and Sons, Kanpur, the assessee, claimed relief under section 80J of the Act. The Income-tax Officer disallowed the said claim on the ground that the year under reference was the sixth year from the date when it had started manufacturing the goods. In appeal the claim was, however, allowed by the Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per annum on the capital employed in the industrial undertaking or ship or business of the hotel, as the case may be, computed in the manner specified in sub-section (1A) in respect of the previous year relevant to the assessment year (the amount calculated as aforesaid being hereafter, in this section, referred to as the relevant amount of capital employed during the previous year): Provided that in relation to the profits and gains derived by an assessee, being a company, from an industrial undertaking which begins to manufacture or produce articles or to operate its cold storage plant or plants after the 31st day of March, 1976, or from a ship which is first brought into use after that date, or from the business of a hotel which starts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provides deduction in respect of profits and gains for newly established undertakings or ships or hotel business in certain cases. According to him, for ascertaining the intention of the Legislature, while interpreting the said statutory provision, one must not ignore the subsequent expression, namely, in the case of a hotel, the relevant assessment year is the one when it actually "starts", the business and not the start of the process of commencing the business. It is also to be noted that the Legislature has not used the expression like-"including", "means", manufacturing process/operation. The word "manufacture" is both "noun" as well as "verb". According to the petitioner it is, in the instant case, used as "noun". Before we undertake ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustry, nearly all such materials as have acquired changed conditions or new and specific combinations, whether from the direct action of the human hand, from chemical processes devised and directed by human skill, or by the employment of machinery, are commonly designated as 'manufactured'." Page 965: "Manufacture, n. The process or operation of making goods or any material produced by hand, by machinery or by other agency; anything made from raw materials by the hand, by machinery, or by art. The production of articles for use from raw or prepared materials by giving such materials new forms, qualities, properties or combinations, whether by hand labour or machine." Page 1209: "Produce: n. Articles produced or grown from or on the soil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacture" in the English language, can be used both as a verb and a noun. When it is used as a verb it refers to the "process" or a "centering action" having starting point and end point. The expression "manufacture" when used as "noun", it has a fixed point namely when the process culminates into the end-point, i.e., the process ends up in the final result. The court is to determine whether the word "manufacture" in section 80] of the Act is used as "verb"; or "noun". Doubt, if any, is short-lived if one looks to the expression "to produce articles", used in that very section. This clearly shows that the Legislature has in mind the production of articles. There is no doubt, that by the use of the word "or" between two expressions, viz., ..... X X X X Extracts X X X X X X X X Extracts X X X X
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