TMI Blog2021 (8) TMI 569X X X X Extracts X X X X X X X X Extracts X X X X ..... the decision in the case of Commissioner of Income-Tax, Chennai v. Pallava Granite Industries (I) (P) Ltd. [ 2013 (12) TMI 1210 - MADRAS HIGH COURT] . Both the above mentioned decisions deal with granite and marble blocks. In the case on hand, the CIT(A) had elaborately examined the process through which the quarried rough stone goes through before it becomes a polished granite slab or tile or any other article. We are of the considered view that the Tribunal was right in confirming the order passed by the CIT(A) - Decided against revenue. - T.C.A. Nos.230 of 2010, 279 of 2011 & 563 of 2014 - - - Dated:- 4-8-2021 - Hon'ble Mr. Justice T.S. Sivagnanam And Hon'ble Mr. Justice Sathi Kumar Sukumara Kurup For the Appellant : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e had dimensionally cut and polished the block of granites and same were exported and the assessee is entitled for exemption u/s.10B when the sale invoices clearly mentioned that the assessee had exported 'processed dimensional rough or crude granite' to mean that the granite has been processed into rough/crude blocks merely making them fit for transportation? 3.We have elaborately heard Mrs.R.Hemalatha, learned Senior Standing Counsel for the appellant/Revenue and Ms.Sri Niranjani Srinivasan, learned counsel appearing for the respondent/assessee. 4.There are three appeals arising out of three Assessment Years and we will take T.C.A.No.230 of 2010 as the lead case. 5.The assessee is engaged in the granite business and f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-Tax Officer, Udaipur v. Arihant Tiles Marbles (P) Ltd. reported in (2010) 320 ITR 79 (SC) and the decision of the Division Bench of this Court in the case of Commissioner of Income-Tax, Chennai v. Pallava Granite Industries (I) (P) Ltd. reported in (2014) 221 Taxman 107 (Madras) . Both the above mentioned decisions deal with granite and marble blocks. 8.The argument of Mrs.R.Hemalatha, learned Senior Standing Counsel, appearing for the appellant/Revenue, is by submitting that, during the Assessment Year under consideration, the content in Section 2(29BA) of the Act was not available, and similarly, the definition of manufacture under Section 10-B(7)(iii) was not there in the Statute book and therefore, the Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. Thus, going by the decision of the Supreme Court in the case of Gem Granites (supra), on the scope of the expression 'manufacture', in the absence of any specific definition, we have no hesitation in giving common man's understanding as to the scope of the expression that the expression 'manufacture' would include every process, which would ultimately result in the production of new article having a different character in view. 9.The decision in the case of Arihant Tiles Marbles (P) Ltd. (supra) would also aid the case of the assessee, wherein, the Court pointed out that it was not concerned only with cutting of marble blocks into slabs, but also concerned with the activity of polishing and ultimate conv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. 11.The learned Standing Counsel placed reliance on the decision of the Division Bench of the High Court of Kerala in Nishanth Exports v. Assistant Commissioner of Income-Tax, Circle-1, Mattancherry reported in (2018) 401 ITR 401 (Kerala) . The said decision also would not help the case of the Revenue, because, whether garbling to make pepper edible would amount to giving rise to a different commodity distinct from the raw pepper purchased, was the issue therein. Admittedly, in the said case, the pepper both in raw form or in edible form, continued to remain as pepper. 12.The learned counsel referred to the decision of the Hon'ble Supreme Court in Lucky Minmat Pvt. Ltd. v. Commissioner of Income- Tax, Jaipur , reported ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sizing of marble blocks after excavation would not come within the ambit of expression 'manufacture' or 'production'. In the circumstances, this Court held that the assessee was not entitled to the benefit of section 80HH of the Income-tax Act. However, this Court distinguished the judgment of the Rajasthan High Court in the case of CIT v. Best Chemical Lime Stone Industries (P.) Ltd. [1994] 210 ITR 883. In that case, Best Chemical Lime Stone Industries (P.) Ltd. (supra) was engaged in the business of extracting limestone and its sale thereafter converting it into lime and limedust or concrete which was held to be an activity of manufacture or production. The activity of conversion into lime and limedust, according to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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