1982 (9) TMI 109

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....egistered firm working under the name and style of Chamba Mineral Co. The business of the assessee is extraction of slates from the various quarries as mentioned by the ITO in his impugned order dated 20-2-1978. During the course of the assessment proceedings, the assessee had made a claim that it is entitled to deduction in respect of profits and gains derived from newly established industrial un....

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....974. It provides deduction in respect of profits and gains from newly established industrial undertaking or hotel business in backward areas. Sub-section (10) of this section, however, contains a prohibition for such allowance and this prohibition is in relation to any undertaking engaged in mining. The real issue, therefore, is whether the assessee is engaged in mining or not. If the assessee is ....

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....pen excavation usually for obtaining building stone, slate or limestone, etc. The word 'mining' means the process of business of working mines whereas the word 'quarrying' is an act of extracting stone, marble, slate or limestone, etc. There is further distinction brought out by the learned Commissioner (Appeals) between the words 'mining and quarrying' with reference to Encyclopaedia Britannica, ....