TMI Blog2018 (11) TMI 382X X X X Extracts X X X X X X X X Extracts X X X X ..... ve not been disputed by the Revenue at any stage. Thus,the instant activity of the assessee is held to be an activity of manufacturing; thus, assessee is eligible for additional depreciation u/s 32(1)(iia) of the Act on its plant and machineries relating to Seed Division. - decided in favour of assessee. - ITA NO. 6263/MUM/2016 - - - Dated:- 19-9-2018 - Shri G.S. Pannu, Accountant Member And Shri Ravish Sood, Judicial Member For the Appellant : Shri Hiro Rai For the Respondent : Shri Rajesh Kumar Mishra ORDER PER G.S. PANNU, AM : The captioned appeal filed by the assessee pertaining to Assessment Year 2010-11 is directed against an order passed by CIT(A)-3, Mumbai dated 29.08.2016, which in turn arises out of an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2, which relates to denial of assessee s claim for additional depreciation on plant and machineries as per Sec. 32(1)(iia) of the Act amounting to ₹ 97,83,302/-. It has been explained that the claim has been denied by the lower authorities on the ground that assessee is not engaged in the business of manufacture or production of any article or thing and thus it is not eligible for the additional depreciation u/s 32(1)(iia) of the Act. 4. In this context, it is noted that the appellant is a company incorporated under the provisions of the Companies Act, 1956 and is, interalia, engaged in the business of production, processing and marketing of hybrid and high yielding seeds and field crops like cereals and fibre oil seeds as also h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uality of the batch. The seeds which do not pass the test are disposed. d) The crop is then subjected to the process of segregation as per the quality through the screening and centrifuge process using screening machines and centrifuge machines. e) The good seeds which come out of segregation process is then treated with various chemicals, which preserve and/or increases the quality of the seeds. It also prevents the seed from attacks of pest. After the treatment the seeds are unfit for Human consumption. The seeds can only be utilised for the purposes of cultivation. f) It is at this stage, the crop can no longer be called a crop but are seeds which has to be utilised as such only and cannot be used for consumption as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... through the different stages of processing. Thus, the activity of processing was held to be in the nature of manufacturing activity. If we examine the facts of the instant case in the light of the judgment of the Hon'ble Bombay High Court in the case of Jalna Seeds Processing and Refrigeration Co. Ltd. (supra), an irresistible conclusion which can be drawn is that the pre-processed seeds procured by the assessee are quite different in its usage and marketability qua the final product. The various stages of processing undertaken by the assessee, which were canvassed by the assessee before the Assessing Officer also, have not been disputed by the Revenue at any stage. Thus, considering the ratio of the judgment of the Hon'ble Bomba ..... X X X X Extracts X X X X X X X X Extracts X X X X
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