C.I.T., UDAIPUR vs. M/S TALESARA EXPORTS

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ITA/260/2013HC RajasthanRJHC01033956201327 October 20151 pages
AI SummaryDismissed

What did the High Court hold?

The Tribunal held that the assessee's activity of cutting and sizing of marble stone is indeed a manufacturing process. Therefore, the exemption claimed by the assessee under Section 10B of the Income Tax Act, 1961 was rightly allowed by the ITAT. Regarding the addition of Rs. 42,940/- on account of transportation charges, the Tribunal found that this issue was based on a finding of fact. As such, it did not involve any substantial question of law, and the ITAT's decision on this point was upheld. The appeal preferred by the revenue was dismissed.

What were the facts?

The appeal was filed by the Commissioner of Income Tax, Udaipur against the judgment dated 15.07.2013 passed by the Income Tax Appellate Tribunal (ITAT), Jodhpur Bench. The assessee, M/s. Talesara Exports, is engaged in the cutting and sizing of marble stone, which the ITAT held to be a manufacturing process. Consequently, the ITAT allowed the exemption under Section 10B of the Income Tax Act, 1961. The revenue also challenged an addition of Rs. 42,940/- made on account of transportation charges. The ITAT's decision on this matter was based on findings of fact.

What were the issues?

1. Whether the ITAT was correct in holding that the cutting and sizing of marble stone by the assessee constitutes a manufacturing process, thereby entitling it to exemption under Section 10B of the Income Tax Act, 1961? 2. Whether the ITAT's decision regarding the addition of Rs. 42,940/- on account of transportation charges, which was based on findings of fact, involved any substantial question of law? Assessee's Contention: The assessee contended that its activity of cutting and sizing marble stone is a manufacturing process and thus eligible for exemption under Section 10B. The ITAT has not committed any error in allowing this exemption. Revenue's Contention: The revenue challenged the ITAT's decision on the applicability of Section 10B and also the deletion of the addition of Rs. 42,940/-. The revenue argued that the issue regarding transportation charges involved a substantial question of law.

Which sections of the Income-tax Act were involved?

Section 10B

AI-generated summary — verify with the full judgment below

1 D.B. INCOME TAX APPEAL NO.260/2013 Commissioner of Income Tax, Udaipur Vs. M/s. Talesara Exports DATE OF ORDER : 27.10.2015 HON'BLE MR. JUSTICE GOVIND MATHUR HON'BLE MISS JUSTICE JAISHREE THAKUR Mr. KK Bissa, for the appellant ... This appeal is preferred to question correctness of the judgment dated 15.7.2013 passed by the Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur in ITA No.65/Jodh/2013. From perusal of facts, it is apparent that the assessee-Unit is involved in cutting and sizing of marble stone and that is a manufacturing process, therefore, the exemption as per Section 10B of the Income Tax Act, 1961 is applicable. The learned Income Tax Appellate Tribunal has not committed any wrong in arriving at the conclusion that the exemption as per the provisions aforesaid was rightly claimed. The other issue with regard to addition of Rs.42,940/- on account of payment of transportation charges is based on the finding of fact and, therefore, that does not involve any substantial question of law. The appeal is dismissed accordingly. [JAISHREE THAKUR], J. [GOVIND MATHUR], J. Sanjay

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