1985 (9) TMI 144

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....sessee had claimed deduction under s. 5(i)(xxxii) of the WT Act in relation to their share from the firm in which he was a partner. The WTO observed that the firm did not employ any persons for the manufacture of jewellery. Gold was given to various goldsmiths on piece rate basis and jewellery obtained from them. In other words, according to the WTO, the firm in which the assessees were partners, had not engaged itself in the manufacture or processing of jewellery. According to the WTO the decision of the Madras High Court in Addl. CIT vs. Chillies Export House Ltd. 1978 CTR (Mad) 230 : (1978) 115 ITR 73 (Mad) applied and the assessees were not entitled to any exemption. 2. There were appeals to the AAC. The AAC referred to the decision ....

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....valent to the assessee manufacturing goods. The Departmental Representative, therefore, submitted that the finding of the AAC should be set aside and that of the WTO restored. 4. On behalf of the assessee it was contended that in the case of CWT vs. Lakshmi, K. (1983) 36 CTR (Mad) 1 : (1983) 142 ITR 656 (Mad), the Madras High Court had pointed out that in respect of processing it was not that all the processes resulting in the end manufacture must be carried out by the assessee himself. The ld. counsel submitted that if the assessee had done some processing which had ultimately brought out the end product, such an assessee would be entitled to the benefit of the exemption. 5. We have considered the rival submissions. Sec. 5(1)(xxxii) ....

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....artners in the firm of M/s T. M. V. Sadasivam Chetty & Sons, Trichy. The firm carries on business in stone-set jewellery in the name and style of 'Swaraja Jewellery Hall.' The firm specialises in stone-set jewellery. Until 1963, the firm was itself purifying the gold employing goldsmiths on piece-rate basis. After 1963 in view of the change in the gold control laws, the firm had to discontinue this practice. The old jewellery purchased by the firm is now being sent to the National Refinery, Bombay, a Government of India undertaking for being purified. The firm purchases synthetic stones. Such stones are purchased in lots which include different sizes and different quality of stones. Both Mr. Srinivasan and Mr. Venkataraman, the partne....