TaxTMI 
TaxTMI 
2017 (2) TMI 856
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....iness of granite quarry, cutting and polishing of slabs & tiles, filed its return of income by claiming additional depreciation on plant & machinery to the tune of Rs. 62,78,247/-. The Assessing Officer has disallowed the claim of the assessee on the ground that the business of the assessee does not amount to production or manufacturing of articles or things. 3. On appeal, Commissioner of Income Tax (Appeals) confirmed the order of the Assessing Officer. 4. On being aggrieved, assessee carried the matter in appeal before the Tribunal. 5. Learned counsel for the assessee submitted that granite quarry, cutting and polishing of slabs is amounting to manufacture or prodution of article & thing, therefore, the assessee is entitled for a....
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....d with the activity of polishing and ultimate conversion of blocks into polished slabs and tiles. What we find from the process indicated herein-above is that there are various stages through which the blocks have to go through before they become polished slabs and tiles. In the circumstances, we are of the view that on the facts of the cases in hand, there is certainly an activity which will come in the category of "manufacture" or "production" under Section 80IA of the Income Tax Act. As stated hereinabove, the judgment of this Court in Aman Marble Industries Pvt. Ltd., (2005) 1 SCC 279 : (2003) 157 ELT 393 (SC) was not required to construe the word "production" in addition to the word "manufacture". One has to examine the scheme of the A....
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....der Section 32A of the Income Tax Act. In that matter, it was argued on behalf of the Revenue that extraction and processing of iron ore did not produce any new product whereas it was argued on behalf of the assessee that it did produce a distinct new product. The view expressed by the High Court that the activity in question constituted "production" has been affirmed by this Court in Sesa Goa case, (2004) 13 SCC 548 : 271 ITR 331 (SC) saying that the High Court's opinion was unimpeachable. It was held by this Court that the word "production" is wider in ambit and it has a wider connotation than the word "manufacture". It was held that while every manufacture can constitute production, every production did not amount to manufacture. ....
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....ts, intermediate products and residual products which emerge in the course of manufacture of goods. 20. Applying the above tests laid down by this Court in Budharaja's case 1994 Supp (1) SCC 280 : (1993) 204 ITR 412 to the facts of the present cases, we are of the view that blocks converted into polished slabs and tiles after undergoing the process indicated above certainly results in emergence of a new and distinct commodity. The original block does not remain the marble block, it becomes a slab or tile. In the circumstances, not only there is manufacture but also an activity which is something beyond manufacture and which brings a new product into existence and, therefore, on the facts of these cases, we are of the view that the Hi....