TaxTMI 
TaxTMI 
2012 (5) TMI 506
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....hereinafter called the "Act, 1961") has been filed against the judgment and order dated 25/1/2002, passed by the Income Tax Appellate Tribunal, Delhi (hereinafter called the "Tribunal") in I.T.A. Nos.6810 & 8864 (Del)/81 for the Assessment Years 1987-88 and 88-89. The Assessing Officer by the assessment order dated 31/3/1987 rejected the claim of the assessee under Sections 80HH and 80I of the Act, 1961. The assessee filed an appeal before the Commissioner of (Appeals) which was decided by order of the Commissioner dated 29/8/1991 allowing the appeal partly. Insofar as deductions under Section 80-HH and 80-I of the Act are concerned, the said ground was not allowed by the appellate authority. Feeling aggrieved by the said order, an appeal w....
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....ing material is filled in the holes and after the blasting, big boulders are excavated from the quarry. These big boulders are broken into small ones of specific weight and size which are supplied. The Tribunal while accepting the ground urged by the appellant that they are entitled for deduction under Sections 80-HH and 80-I of the Act, held as under: "In the instant case the facts are similar as in the case of Best Chem & Lime Stone Industries (P) Ltd. and accordingly we hold that extracting stone and then cutting into the required size and weight is a manufacturing activity. Therefore, the assessee qualifies for deduction under Sections 80-HH and 80-I of the Income Tax Act. Accordingly the AO is directed to allow the deduction u/s 80-....
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....e learned counsel for the parties and have perused the record. Section 80-HH (2) of the Act, 1961 uses the word "manufacture" or "produce". "Manufacture" has been defined in Section 2(29BA) of the Act, 1961 which is to the following effect: "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; or (b) bringing into existence of a new and distinct object or article or thing with a different chemical composition or integral structure." From the nature of the activity of the assessee as noted by ....
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....ourt distinguished its earlier judgment in the case of Best Chem and Limestone Industries Pvt. Ltd. [1994] 210 ITR 883, because there the assessee was engaged in the business of extracting limestone and its sale either as such or after converting it into lime and lime dust or concrete by stone crushers. Such, the High Court found, were not the facts in the case before it. We have been shown the statements of case in the present matter as also in the matter of Best Chem and Limestone Industries Pvt. Ltd.'s case [1994] 210 ITR 883 (Raj) and are satisfied that the Tribunal has found as aforestated. There was, therefore, clearly a distinction on the facts. The conversion into lime and lime dust or concrete by stone crushers could legitimatel....