C.I.T. UDAIPUR vs. M/S MADHAV MARBLE and GRANITES PVT. LTD.

ITA/172/2013HC RajasthanRJHC01020059201305 January 2015Bench: GOVIND MATHUR,ANUPINDER SINGH GREWAL2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that the process of cutting, polishing, and sizing of marble by the assessee is a manufacturing process. This decision was based on a previous judgment by a Division Bench of the same court in D.B. Income Tax Appeal No.7/2008 (Commissioner of Income Tax, Udaipur Vs. M/s. Madhav Marbles and Granites Ltd.), decided on 14.01.2008, which had taken the same view. Consequently, the High Court found no substantial question of law involved in the present appeal. The appeal was dismissed, affirming the ITAT's decision which allowed the deduction under Section 10-B. No issues were left undecided.

What were the facts?

The Revenue, Commissioner of Income Tax, Udaipur, has appealed against the order dated 12.03.2013 passed by the Income Tax Appellate Tribunal (ITAT), Jodhpur Bench. The ITAT had affirmed an order dated 03.03.2009 passed by the Commissioner of Income Tax (Appeals), Udaipur. The core issue revolves around whether the assessee, M/s Madhav Marble & Granites Pvt. Ltd., Udaipur, engaged in the process of cutting, polishing, and sizing marble, was undertaking a manufacturing process. If so, it would be eligible for deductions under Section 10-B of the Income Tax Act, 1961. The High Court noted a previous decision by a Division Bench of the same court in a similar case.

What were the issues?

1. Whether the process of cutting, polishing, and sizing of marble undertaken by the assessee constitutes a manufacturing process, thereby entitling it to deductions under Section 10-B of the Income Tax Act, 1961? Assessee's Contention: The assessee argued that its activities of cutting, polishing, and sizing marble amounted to manufacturing, making its products eligible for deductions under Section 10-B. Revenue's Contention: The Revenue challenged the ITAT's view that the assessee's process was manufacturing. The Revenue likely contended that these activities were merely processing and not manufacturing in the sense contemplated by Section 10-B, thus disallowing the deduction.

Which sections of the Income-tax Act were involved?

Section 10-B

AI-generated summary — verify with the full judgment below

[1] IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR O R D E R D.B. INCOME TAX APPEAL NO.172/2013 Commissioner of Income Tax, Udaipur Versus M/s Madhav Marble & Granites Pvt. Ltd., Udaipur Date of Order :: 05.01.2015 PRESENT HON'BLE MR. JUSTICE GOVIND MATHUR HON'BLE MR. JUSTICE ANUPINDER SINGH GREWAL Mr. K.K. Bissa for the appellant BY THE COURT : This appeal is preferred to question correctness of the judgment dated 12.03.2013 passed by learned Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur affirming the order dated 03.03.2009 passed by the Commissioner, Income Tax (Appeals), Udaipur. By the judgment impugned, a view has been taken that the process of cutting, polishing and sizing of marble by the assessee is a manufacturing process; hence, it is a product allowable for deductions as per Section 10-B of the Income Tax Act, 1961. Suffice to mention that a Division Bench of this court in D.B. Income Tax Appeal No.7/2008 (Commissioner of

[2] Income Tax, Udaipur Vs. M/s. Madhav Marbles and Granites Ltd.) decided on 14.01.2008 has taken the same view. In light of the judgment referred above, we do not find any substantial question of law involved in this appeal. The same, therefore, is dismissed. [ANUPINDER SINGH GREWAL], J. [GOVIND MATHUR], J. Pramod

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