1995 (6) TMI 46

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....ling the parts and its other articles. The assessee claimed that in this way the assessee was an industrial undertaking and was engaged in manufacturing of articles or things and was thus entitled to deductions under sections 80-HHA and 80-I. The Assessing Officer on the other hand took the view that the assessee was in industrial undertaking because, according to him, by no stretch of imagination the activities of breaking of ship and selling the parts and its other articles could be considered to be industrial undertaking. 3. When the assessee went in appeal, the ld. CIT(A) referred to seven decided cases of High Courts and Tribunals and took the view that the assessee was an industrial undertaking engaged in manufacturing activities. ....

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..... (India) (P.) Ltd [1980] 126 ITR 333 and thereafter, in one of the most recent decisions of the Hon'ble Bombay High Court in the case of CIT v. Sterling Foods (Goa) [1995] 213 ITR 851, the Hon'ble Bombay High Court has discussed the legal propositions associated with the expressions " industrial undertaking " and " manufacture " and " production of articles ", which issues are covered by the provisions of section 80-HHA of the I.T.Act. It would be worth quoting from pages 856 and 857 of the report in the case of Sterling Foods (Goa) to the following effect. " This principle of interpretation is too well-known to need any elaboration. As observed by the Supreme Court in Polestar Electronic (P.) Ltd v. Addl. CST [1978] 41 STC 409, if ther....

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....ount to manufacture. As observed by the Supreme Court in CIT v. N.C. Budharaja & Co. [1993] 204 ITR 412, the word 'production' or 'produce' when used in juxtaposition with the word 'manufacture' takes in bringing into existence new goods by a process which may or may not amount to manufacture. It also takes in all the by-products, intermediate products and residual products which emerge in the course of manufacture of goods." 9. We have substantially quoted some of the observations of the Hon'ble Bombay High Court which include references to the decisions of the Hon'ble Supreme Court to indicate that after the decision of the Hon'ble Supreme Court in the case of N. C. Budharaia & Co. the concept of adopting a liberal interpretation has a....