C.I.T.UDAIPUR vs. M/S KARNAWAT INTERNATIONAL P LTD.

ITA/176/2013HC RajasthanRJHC01024528201308 September 20151 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal did not involve any substantial question of law. The Court found no fault with the ITAT's judgment, which was based on the Supreme Court's decision in the case of ITO Vs. Arihant Tiles and Marbles Pvt. Ltd. (2010) 320 ITR 79. The reasoning was that the ITAT had correctly applied the precedent set by the Supreme Court in determining that the assessee's activities of cutting, sizing, and polishing marble constituted an industrial process. Consequently, the appeal filed by the Revenue was dismissed.

What were the facts?

The Commissioner of Income Tax, Udaipur (Revenue) filed an appeal before the High Court of Rajasthan at Jodhpur against the order of the Income Tax Appellate Tribunal (ITAT). The ITAT had concluded that the assessee, M/s Karnawat International (P) Ltd, was engaged in the process of cutting, sizing, and polishing marble before export. The High Court was reviewing the ITAT's decision. The appeal was filed by the Revenue.

What were the issues?

1. Whether the ITAT was correct in holding that the assessee's activities of cutting, sizing, and polishing marble before export constitute an industrial undertaking or process eligible for certain tax benefits or classifications. The Revenue likely contended that these activities did not qualify as a manufacturing process. The Assessee likely argued that these activities did constitute a manufacturing or industrial process. The ITAT's decision was based on the Supreme Court judgment in ITO Vs. Arihant Tiles and Marbles Pvt. Ltd. reported in (2010) 320 ITR 79.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR J U D G M E N T D.B. INCOME TAX APPEAL NO.176/2013 Commissioner of Income Tax, Udaipur Versus M/s Karnawat International (P) Ltd Date of Judgment :: 08.09.2015 PRESENT HON'BLE MR. JUSTICE GOVIND MATHUR HON'BLE MISS JUSTICE JAISHREE THAKUR Mr. K.K. Bissa for the appellant BY THE COURT : The Income Tax Appellate Tribunal after examining the entire material available on record arrived at the conclusion that the assessee is engaged in the process of cutting, sizing and polishing of the marble before the same is being exported. In view of it, we do not find any wring with the judgment impugned, which, as a matter of fact, is based upon the judgment of Hon'ble Supreme Court in the case of ITO Vs. Arihant Tiles and Marbles Pvt. Ltd. reported in (2010) 320 ITR 79. The appeal, as such, does not involve any substantial question of law. Accordingly, the same is dismissed. [JAISHREE THAKUR], J. [GOVIND MATHUR], J. Pramod

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