TaxTMI 
TaxTMI 
2009 (9) TMI 953
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....f the Act. The assessee had claimed deduction under section 10B of the Income-tax Act, which claim was turned down by the Assessing Officer in his order while framing the assessment order dated 1-12-2006 holding that the assessee was neither engaged in the business of export of 'computer software' nor engaged in the 'manufac-ture or produce of article or thing', which was necessary ingredient to qualify for deduction under section 10B of the Act. The ITAT, however, set aside the order of the Assessing Officer holding that the activity of the assessee amounted to manufacture or produce of article or thing and thus, satisfy the requirement of section 10B of the Act. The ITAT has affirmed this order thereby dismissing the appea....
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....on of 'manufacturing process'. It is clear from the above that the raw form blocks are purchased and then those slabs undergo various processes before they become marketable and the final product is clearly much different from the product initially purchased by the assessee. Had it been a case of purchasing of blocks and slabs, cutting the same in that very form and thereafter selling those tiles, there could have been an arguable case as to whether this amounts to manufacturing process or not. However, in the present case the activities are not confined to cutting of the blocks or slabs after the purchase but it has to undergo various processes with the help of machines and labour and after applying various kinds of chemicals. In t....
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....hat section 10B is applicable to a 100 per cent EOU, whereas section 80-IB can be in respect of any unit. In our opinion, therefore, the expression 'production' will have the same meaning as in Sesa Goa Ltd. ( supra) and consequently, the question framed is devoid of merits.' 5. We may also note that Bombay High Court in the case of CIT v. Fateh Granite (P.) Ltd. 314 ITR 32, was concerned with the identical issue, namely, manufacture of granite tiles and held the same to be a manufacturing process as is clear from the following discussion contained thereunder : "The language used in section 10B is 'manufacture or production'. This language is similar to the language used in section 80-IB. The Supreme Court in CIT....