SHRI S.K. GOLCHA (HUF),JAIPUR vs. ASSISTANT COMMISSIONER OF INCOME TAX, JAIPUR

ITA 245/JPR/2018Status: DisposedITAT Jaipur10 May 2019AY 1996-9723 pages
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What did the Tribunal hold?

The Tribunal held that the process undertaken by the assessee, involving breaking boulders, removing impurities, crushing, and grading soapstone into powder, resulted in a distinct and marketable article. Therefore, it constituted production and manufacture, making the assessee eligible for deductions under sections 80-I and 80-IA.

What were the facts?

The assessee claimed deduction under sections 80-I and 80-IA for its industrial units involved in processing soapstone. The Assessing Officer (AO) denied this deduction, holding that the process of crushing boulders into smaller sizes and powder did not constitute 'manufacture' or 'production'. This led to appeals before the CIT(A) and subsequently the ITAT.

What were the issues?

Whether the process of crushing and grading soapstone into powder amounts to 'manufacture' or 'production' for the purpose of claiming deductions under sections 80-I and 80-IA of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 80-I,Section 80-IA

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Income Tax Appellate Tribunal, JAIPUR BENCHES”B”, JAIPUR

Before: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 789 &790/JP/2017 & 245/JP/2018

For Appellant: Shri A.B. Dangayach (C.A.) jktLo dh vksj ls@
Hearing: 02/05/2019Pronounced: 13/05/2019

PER: VIJAY PAL RAO, J.M. These three appeals are directed against three separate orders of CIT(A), dated 02.08.2017 for the assessment years 1997-98 & 1998-99 and dated 29.11.2017 for the assessment year 1996-97 respectively. The assessee has raised common grounds in these appeals and the grounds raised for the assessment year 1997-98 are as under:-

ITA No. 789& 790/JP/2017 & 245/JP/2018 Shri S.K.

The order continues below.

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