2018 (11) TMI 382

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....this appeal, the assessee has raised the following Grounds of appeal:- "1. On the facts and circumstances of the case as well as in law, the Learned Commissioner of Income-tax (Appeals) 3, Mumbai erred in upholding the notice issued under section 148, and not considering that the same is based on the audit objection raised and/or change in opinion of the learned Assessing Officer. 2. On the facts and circumstances as well as in law the Learned Commissioner of Income-tax (Appeals) 2, Mumbai erred in confirming the disallowance of the claim of additional depreciation of Rs. 97,83,302 under the provisions of section 32(iia) of the Income-tax Act. a. The learned Commissioner (Appeals) erred in holding that the appella....

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....on. Notably, Sec. 32(1)(iia) of the Act permits an assessee engaged in the business of manufacture or production of any article or thing to claim additional depreciation to the extent of 20% of the actual cost of such plant and machinery. Before the Assessing Officer, assessee enumerated the activities carried on by it in order to show that it was indeed engaged in manufacturing/processing of seeds so as to be eligible for additional depreciation u/s 32(1)(iia) of the Act. In para 6.2 of the assessment order, the submissions of the assessee have been reproduced by the Assessing Officer, which are quite relevant to appreciate the present controversy. The relevant extract reads as under :- "6.2 ................... The Company produce....

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....The treated seeds are packed as per the accepted norms and then dispatched to various dealers and distributors all over India." 5. On the basis of the aforesaid, it has been canvassed by the learned representative that the activities of the assessee justify its assertion that it is engaged in the business of manufacture/processing of seeds. In this context, reference has also been made to the judgment of the Hon'ble Bombay High Court in the case of CIT vs Jalna Seeds Processing and Refrigeration Co. Ltd., 246 ITR 156 (Bom.) to contend that an activity similar to that of the assessee has been found to be in the nature of 'manufacturing' activity. The Hon'ble Bombay High Court was considering as to whether processing of raw seeds i....