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TMI Blog2016 (3) TMI 1413X X X X Extracts X X X X X X X X Extracts X X X X ..... d to as 'the Act'). 2. The sole substantive ground raised by the Revenue that Commissioner of Income Tax (Appeals) erred in directing the Assessing Officer to allow deduction u/s.10B without appreciating the explanations and also definitions of 'manufacture' defined u/s.2(29BA) of the Act and the Finance Act, 2009. 3. The Brief facts of the case, the assessee is a company engaged in production and exporting of granite monuments having 100% EOU undertaking manufacturing granite products. The Return of income was filed on 30.09.2010 with total income of @50,94,176/-. Subsequently, the return was processed and under scrutiny norms, the case was selected and Assessing Officer issued notice u/s.143(2) of the Act with detailed questionnaire. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der:- ''manufacture'' with its grammatical variations, means a change in a non-living physical object or article or thing, (a) Resulting in transformation of the object or article or thing into a new and distinct object or article or thing having a different name, character and use; of (b) bringing into existence of a new and distinct object or article or thing with a different chemical composition or integral structure. The ld. Assessing Officer is under a presumption that the granite block does not change into a distinct object and the character and use for placing it as memorial stones for the departed persons and it is not distinctively different from a granite block and gave a finding that granite block can be used as monuments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of manufacturing. Further, the assessee company also complied the conditions for claiming deduction u/s.10B and relied on the Supreme Court and High Courts decisions as under:- ''(i) Arihant Tiles and Marbles P. Ltd ( 320 ITR 79) (SC) (ii) Ambika Recycling (2014) (45 Taxmann.com 386) (Guj) (iii) Budharaha and Co. (204 ITR 412) (SC) (iv) SesaGoa Ltd. (271 ITR 331) (SC) (v) Vijay Shipping Corporation (314 ITR 309) (SC) (vi) Tamilnadu Minerals Ltd (210 Taxman 257) (vii) Gem Granities (141 Taxman 528) (vii) John Brown Technologies India P. Ltd (257CTR370) Kar'' The ld. Commissioner of Income Tax (Appeals) considered the facts, observations of the Assessing Officer and relevant materials, is of the opinion that prime facie gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of Arihant Tiles (supra), it was held that the original block does not remain a marble block, it becomes a slab or a tile and held that cutting and polishing of marble amount to production or manufacture of an article or thing. In Vijay Shipping Corporation (supra) it was held similarly that conversion of jumbo rolls of photographic films into small flats and rolls in desired sizes amounts to manufacture or production of an article or thing. 4.6.2 Taking the entire conspectus of the case before me into account as discussed in the foregoing, I have no hesitation in holding that the activity engaged in by the appellant constitutes manufacture or production of article or thing within the meaning of s.10B of the I.T .Act. The AO's ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Commissioner of Income Tax (Appeals) has misinterpreted the definition of manufacture without going into actual process system as there is only value addition to the product and no new distinct item is produced. We find the submission of the ld. Departmental Representative are restricted to the exclusive definition of manufacture without considering the process of chipping, cutting, polishing and milling which are necessarily carried out for monuments and fixed in the memory of deported soul such distinct product has emerged from raw material having separate identity and sold independently. The deduction u/s.10B of the Act applies to any undertaking as under:- ''(i) it manufactures or produces any article or thing or computer software; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e object or article or thing into a new and distinct object with different character. The granite raw block is mounted and with the process of cutting, clipping and polishing into a monument has distinct character and usage. The ld. Authorised Representative supported and relied on decision of ITO vs. Arihant Tiles & Marbles (P) Ltd 320 ITR 0079 (SC) were the conversion of marble block into polished slabs and tiles constitutes ''manufacture or production '' as it results in emergence of a new and distinct commodity, therefore, assessee undertaking such activity is entitled to the benefit of Sec.80IA. So, considering the apparent facts, definitions, usage and the process of manufacturing, and assessee's own case on the nature of business of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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