TaxTMI 
TaxTMI 
2021 (6) TMI 818
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....ssue are stated in brief. The original assessment for the year under consideration was completed by the A.O. u/s 143(3) of the Act. Subsequently, the Ld. Principal CIT passed revision order u/s 263 of the Act. Consequent thereto, the present assessment order came to be passed by the A.O. on 28.3.2014. The assessee is the proprietor of the concern named "Biligiri Granites" and it is engaged in the business of quarrying granites and export of rough granite blocks. This concern was established in 1978. Subsequently, the assessee established another unit in the year relevant to the assessment year 2000-01 in the name of S.M. Natural Stones. The new unit was registered as 100% EOU. According to the assessee, the Commercial tax authorities objec....
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....ncluded sales value of Rs. 1.47 crores relating to export of granite blocks and slabs. The CIT noticed that the deduction u/s 10B of the Act is available only in respect of manufactured items. Hence the Ld CIT(A) held that the profit realised on export of granite blocks is not eligible for deduction u/s 10B of the Act, as it is a trading item. 3. Consequent to the order passed by Ld. Principal CIT u/s 263 of the Act, the A.O. passed the impugned assessment order, wherein he also took the very same view as that of Ld. Principal CIT and accordingly rejected the claim of deduction u/s 10B of the Act. 4. In the appellate proceedings, Ld. CIT(A) took the view that the assessee has established a new unit in the year relevant to the assessment y....
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....laced reliance before the Tribunal in those years, on the decision rendered by Hon'ble Delhi High Court in the case of CIT Vs. ARR-ESS Exim Pvt Ltd. (ITA No.551/2013 & 553/2013). In the above said case, the Hon'ble Delhi High Court has expressed the view that section 10B of the Act is a beneficial provision and the assessee should be given the benefit of exemption even on the goods which the assessee has not manufactured himself but has got produced through outsourcing i.e. it is held that the manufacture would include procurement through outsourcing. Since revenue could not contradict the above said decision with any other judicial precedent, the coordinate bench held that the assessee would be eligible for deduction u/s 10B of the Act in ....
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....ed that the assessee has exported cut and polished granites apart from monuments. The export sales of cut and polished granites have been categorized as trading items (bought out items) by the tax authorities. He submitted that the activity of sawing marble blocks into slabs and tiles and polishing the same has been held to be manufacture or production by Hon'ble Supreme Court in the case of ITO vs. Arihant Tiles and Marbles P Ltd (2010)(320 ITR 79). Accordingly, the Ld A.R submitted that the assessee is entitled for deduction u/s 10B in respect of profits earned on sale of cut and polished granite stones also. 9. On the contrary, the Ld D.R submitted that the assessee has purchased the granite slabs from the market and the same has been e....
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.... view that the deduction u/s 10B is available in respect of manufacture or production activities. Hence the issue has to be examined independently without having resort to the decision rendered by the co-ordinate bench in AY 2006-07. 12. The assessee has furnished the Profit and Loss account at pages 63 of the paper book. A perusal of the same would show that the assessee has incurred expenses on extraction and quarrying, purchase of blocks and purchase of finished goods. We notice that the purchase of finished goods is to the tune of Rs. 25,17,391/-. Thus, it appears that the assessee has been doing its own processing of raw blocks and has also purchased finished goods. The Hon'ble Supreme Court has held in the case of Arihant Tiles & Ma....