2013 (12) TMI 1210

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....representation by the assessee before this Court either in person or through a counsel. 2. The assessment years under consideration are 2003-04, 2004-05, 2005-06, however, the facts in all the above cases are common. 3. The assessee is a private limited company, engaged in the business of manufacture and export of cut polished granite building slabs. It is a 100% Export Oriented Unit approved by the competent authority. Thus, the assessee claimed exemption from levy of tax under Section 10B of the Income Tax Act, it being 100% Export Oriented Unit. The Assessing Officer however rejected the assessee's claim under Section 10B of the Income Tax Act, on the ground that cutting and polishing of granite slabs did not amount to manufacture ....

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....ure' or 'produce' included the cutting and polishing of precious and semi-precious stones, the First Appellate Authority viewed that cutting and polishing of granite blocks would also invariably fall within the meaning and in the category of 'manufacture'/'production'. Following the order passed by the Commissioner of Income Tax (Appeals) for the assessment year 2004-05 dated 26.03.2007, the assessee's claim was allowed, thereby the assessment for the year 2003-04 was set aside. This is so, as regards the assessment year 2005-06 also. Aggrieved by this, the Revenue went on appeal for the assessment years 2003-04 and 2004-05, before the Income Tax Appellate Tribunal. 4. In the common order passed by the Income Tax Appellate Tribunal for t....

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....be taken as amounting to manufacture. 6. We do not agree with the said submissions made by the learned Standing counsel appearing for the Revenue. 7. It is seen that even though the definition of 'manufacture' was omitted from Section 10B of the Income Tax Act with effect from 01.04.2001, yet under Section 2(29BA) inserted with effect from 01.04.2009 under the Finance (No.2) Act, 2009, 'manufacture' is defined as follows:- 2(29BA) "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 exi....