2010 (2) TMI 1188

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ncome Tax Act, 1961(In short 'the Act') and challenging the interest under section 234B of the Act. 3. As regards, the denial of deduction under section 80IB of the Act, Shri Talati submitted that the claim was denied on the ground that the assessee is not engaged in the activity of manufacturing and producing any article or thing explaining the fact, shri Talati submitted that the assessee had established a new Industrial Unit, wherein it was manufacturing and producing Agron Gas by using various machineries and making Argon in the gaseous form so as to render it fit for use by Industries since liquid Argon cannot be used for the Industrial purpose. The process requires mechanical functions at various levels. The Argon Gas manufactur....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....in ITA No.299/A/2003 for Assessment Year 1998- 99 confirmed the order of the Learned Commissioner of Income Tax (Appeals) holding that the there was neither any manufacturing nor production through it observed that Argon is prepared by fractional distillation of liquid air. 4. Shri Talati submitted that though the issue is decided against the assessee in earlier year, the same was decided when the definition of word 'manufacture' or 'production' was not found in the statute. Recently, Hon'ble Supreme Court in the case of ITO Vs. Arihant Tiles and Marbles Pvt. Ltd. 221 CTR 513 considered the definition of the word manufacture inserted in section 2(29BA) of the Finance No.2 Act, 2009 with retrospective effect from 1.04.2009, the Hon&#3....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....-IA. CIT vs. Sesa Goa Ltd., (2004) 192 CTR (SC) 577 : (2004) 271 ITR 331 (SC) and CIT Vs. N.C. Budharaja & Co. & Anr. (1993) 114 CTR (SC) 420 : (1993) 204 ITR 412 (SC) applied; Lucky Minmat (P) Ltd. vs. CIT (2000) 162 CTR (SC) 404 : (2001) 9 SCC 699, Rajasthan State Electricity Board vs. Associated Industries & Anr. AIR 2000 SC 2382 and Aman Marble Industries (P) Ltd. Vs. CCE 2003 (157) ELT (SC) distinguished. If the contention of the Department is to be accepted, namely that the activity undertaken by the respondents herein is not a manufacture, then, it would have serious revenue consequences. Each of the respondents is paying excise duty, some of the respondents are job workers and the activity undertaken by them has been recognized b....