TMI Blog1999 (9) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... rs for the assessee when the matter is called. Considering an application for reference under section 256(1) of the Income-tax Act 1961 (in short "the Act") the following question has been referred by the Income-tax Appellate Tribunal Cochin Bench (in short "the Tribunal") for opinion of this court : "Whether, on the facts and in the circumstances of the case, the Tribunal is right in law and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. The matter was carried in appeal before the Commissioner of Income-tax (Appeals) (in short "the Commissioner of Income-tax (Appeals)") who allowed the claim. The Revenue challenged the appellate order before the Tribunal. It was inter alia held by the Tribunal that the assessee was not entitled to get the deduction in respect of profits from construction activities but was eligible for deductio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trade as a new and distinct commodity. 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 m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apex court in Commissioner of Income-tax vs N. C. Budharaja and Co. [1993] 204 ITR 412, such activities cannot be construed to involve a process of manufacture or a process of production. It is to be noted that the Tribunal itself had. observed that frames doors and windows as well as cement concrete slabs and other allied articles were used in the building construction activity. In view of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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