TMI Blog2016 (3) TMI 1413X X X X Extracts X X X X X X X X Extracts X X X X ..... case on the nature of business of manufacturing of monuments and the process of conversion of raw material into finished product is identified and saleable and we rely on Apex Court decision of Arihant Tiles Marbles (P) Ltd [ 2009 (12) TMI 1 - SUPREME COURT] were the lordship has considered conversion of marble block into polished slabs and tiles constitutes manufacture and same analogy apply for process of granite block. Therefore, we are not inclined to interfere with the order of Commissioner of Income Tax (Appeals) who has dealt the issue in detail viz-a-viz the explanations of the assessee and we uphold the order of the Commissioner of Income Tax (Appeals) and dismiss the Revenue appeal. - I.T.A. No. 2098/Mds/2015 - - - Dated:- 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany has claimed deduction u/s.10B of the Act @4,03,69,875/-. The company submitted Report in form 56G mentioning the nature of business of undertaking as Manufacturers of processed dimensional granite dressed, cut and polished granite slabs/granite monuments, molded bronze etc., The ld. Assessing Officer under impression that the business is only cutting and polishing granites into required shapes of monuments and issued show cause notice based on the definition of Manufacturer U/sec.2(29BA) of the Finance Act, 2009 w.e.f. 01.04.2009. In compliance to show cause notice the assessee submitted in detail, the process involved in conversion of granite blocks into granite monuments and the process of conversion comes within the definition o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... memorial stone does not loose its character and usage and value addition is achieved with polishing, cutting, chipping into a different and distinct object. The ld. Assessing Officer has depend on legislative intent and usage of product and expressed unilateral opinion, that granite block/ monuments can be placed as memorial stones and depends only in the eyes of observer. Further alleged that deduction u/s.10B of the Act cannot be granted for exporting granite block with little value addition and conversion of granite block does not fit into definition of Manufacture and distinguished the judicial decision relied by the assessee and rejected the deduction u/s.10B of the Act. Aggrieved by the order, the assessee filed an appeal before t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.1 4.6.2 as under:- 4.6.1 It is the plea of the appellant that the process undergone amounts to manufacture as per the definition in the Finance Act, 2009 which means a change in non-living physical object or article or thing, resulting in transformation of the object or article into a new and distinct object or article or thing, having a different name, character and use. It is further pleaded that a granite block is not the same as a monument and it takes many stages and processes to make one such monument. It has been pleaded that alternatively the process amounts to production as is understood in the context of s.32A and 80lA of the Act. The original block, therefore, does not remain the original block and the final product is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax (Appeals), the Revenue has assailed an appeal with Tribunal. 5. Before us, the ld. Departmental Representative argued that the Commissioner of Income Tax (Appeals) erred in not appreciating the findings of the Assessing Officer and granite block will not change its original character by converting into monuments and such activity does not fall in definition of Manufacture inserted by the Finance Act, 2009. The assessee claimed deduction u/s.10B of the Act on little value addition to the block and process does not give any right to the assessee to claim deduction u/s.10B of the Act and relied on the findings of the Assessing Officer and prayed for setting aside the order of Commissioner of Income Tax (Appeals) and allow th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formed as a result of the re- establishment, reconstruction or revival by the assessee of the business of any such industrial undertaking as is referred to in section 33B, in the circumstances and within the period specified in that section; (iii) it is not formed by the transfer to a new business of machinery or plant previously used for any purpose . The assessee company has complied the conditions for claiming 10B deduction as there is no dispute except the allegation that process is not Manufacture . On perusal of definition u/sec. 2(29BA) of the Act as under:- manufacture with its grammatical variation, means a change in a non-living physical object or article or thing (a) resulting in transformation of the object ..... X X X X Extracts X X X X X X X X Extracts X X X X
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