TMI Blog2006 (2) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... The judgment of the court was delivered by P.D. Dinakaran J.- The above tax case appeal is directed against the order of the Income-tax Appellate Tribunal dated November 11, 1998, made in I.T.A. No.2626/Mds/1991, raising the following substantial question of law. "Whether on the facts and in the circumstances of the case the Appellate Tribunal was right in law in holding that the assessee was entitled to deduction under section 80HHC of the Income-tax Act, 1961?" The brief facts leading to the filing of the above appeal are as under. The assessee-firm is engaged in the business of manufacturing and exporting granites. It has filed its return on November 30, 1989, admitting an income of Rs. 5,01,790. The assessee claimed relief und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls' in sub-section (2)(b) of section 80HHC must be read in the context of 'mineral oil' and 'ores' with which it is associated. It seems to us that these words taken together are intended to encompass all that may be extracted from the earth. All minerals extracted from the earth, granite included must, therefore, be held to be covered by the provisions of sub-section (2)(b) of section 80HHC, and the exporter thereof, is therefore, disentitled to the benefit of that section." It is further held therein that: "There are no words of restriction which qualify the word 'minerals' and it would be reasonable to assume that in the absence of any such limitation, the word must be read to include all kinds of minerals in all its forms, i.e., whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mentioned in the 1984 Circular, more so when the statute itself had not drawn such distinction. The 1994 and 1995 circulars both relate to the interpretation of item No.(x) in Schedule XII and are confined to an exposition of the phrase 'cut and polished' used in that item. They do not seek to interpret the word 'minerals'. The 1994 circular clarified that the phrase 'cut and polished' minerals meant exactly that and could not be extended to any other process. The 1995 circular modified the rigour of the 1994 circular to the extent that it recognized some other processes as falling within the phrase 'cut and polished'. Both circulars clearly state that the benefit of section 80HHC was available to cut and polished granite only with effect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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