CIT v. N.C. Budharaja & Co.

204 ITR 412Supreme Court of India1993#599 most cited

What is CIT v. N.C. Budharaja & Co. authority for?

The word 'production' has a wider connotation than 'manufacture'; every manufacture is production, but not every production amounts to manufacture. 'Production' includes bringing into existence new goods, by-products, or inter-products through a process, which may or may not be manufacture.

164

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2006 to 2026.

Also referred to as

CIT v. N.C. Budharaja & Co. · 204 ITR 412 · production vs manufacture · definition of production · wider connotation of production · Section 80I · Section 80J · Section 80IB · Section 10B · tax incentives · deductions for industrial undertakings

Also reported as

70 Taxmann 312

Sections most often in play

Section 147Section 144Section 10BSection 145Section 148Section 80HHCSection 2(29BA)Section 32(1)(iia)

Issues it is cited on

section 2(29ba)section 32asection 80jsection 32(1)(iia)additional depreciationsection 32(1)section 32section 80isection 80notice under section 148section 10previous year

Judgments citing CIT v. N.C. Budharaja & Co.

Oil India Ltd., Dibrugarh vs. Assistant Commissioner of Income Tax, Circle -2, Dibrugarh

ITA 9/GTY/2014[2010-11]Status: DisposedITAT Guwahati26 Aug 2019AY 2010-11

Bench: Shri S.S.Godara & Dr. A.L. Saini

Section 143(3)Section 251Section 80I

…a). 26. The Revenue’s last argument is that assessee’s oil exploration activity cannot be taken “manufacture or production” as prescribed in sec. 80IC(2)(b) of the Act. Hon'ble apex court’s landmark judgment in CIT vs. N.C.Budharaja and Co. and Another (1993) 204 ITR 412 (SC) held long back that the statutory expression “produce” has wider connotation than the word “manufacture”. The former; when used in juxtaposition with the latter, brings into existence new goods by a process which may or may not amount to manufacture. And that the same also includes in all the by products; intermediary or residuary hon'ble De…

Oil India Ltd., Dibrugarh vs. Assistant Commissioner of Income Tax, Range -2, Dibrugarh

ITA 325/GTY/2013[2009-10]Status: DisposedITAT Guwahati26 Aug 2019AY 2009-10

Bench: Shri S.S.Godara & Dr. A.L. Saini

Section 143(3)Section 251Section 80I

…a). 26. The Revenue’s last argument is that assessee’s oil exploration activity cannot be taken “manufacture or production” as prescribed in sec. 80IC(2)(b) of the Act. Hon'ble apex court’s landmark judgment in CIT vs. N.C.Budharaja and Co. and Another (1993) 204 ITR 412 (SC) held long back that the statutory expression “produce” has wider connotation than the word “manufacture”. The former; when used in juxtaposition with the latter, brings into existence new goods by a process which may or may not amount to manufacture. And that the same also includes in all the by products; intermediary or residuary hon'ble De…

Oil India Ltd., Dibrugarh vs. Additional Commissioner of Income Tax, Range -2, Dibrugarh

ITA 87/GTY/2010[2007-08]Status: DisposedITAT Guwahati26 Aug 2019AY 2007-08

Bench: Shri S.S.Godara & Dr. A.L. Saini

Section 143(3)Section 251Section 80I

…a). 26. The Revenue’s last argument is that assessee’s oil exploration activity cannot be taken “manufacture or production” as prescribed in sec. 80IC(2)(b) of the Act. Hon'ble apex court’s landmark judgment in CIT vs. N.C.Budharaja and Co. and Another (1993) 204 ITR 412 (SC) held long back that the statutory expression “produce” has wider connotation than the word “manufacture”. The former; when used in juxtaposition with the latter, brings into existence new goods by a process which may or may not amount to manufacture. And that the same also includes in all the by products; intermediary or residuary hon'ble De…

The Assistant Commissioner of Income Tax, Circle-2, Dibrugarh vs. Oil India Ltd., Dibrugarh

ITA 123/GTY/2008[2006-07]Status: DisposedITAT Guwahati26 Aug 2019AY 2006-07

Bench: Shri S.S.Godara & Dr. A.L. Saini

Section 143(3)Section 251Section 80I

…a). 26. The Revenue’s last argument is that assessee’s oil exploration activity cannot be taken “manufacture or production” as prescribed in sec. 80IC(2)(b) of the Act. Hon'ble apex court’s landmark judgment in CIT vs. N.C.Budharaja and Co. and Another (1993) 204 ITR 412 (SC) held long back that the statutory expression “produce” has wider connotation than the word “manufacture”. The former; when used in juxtaposition with the latter, brings into existence new goods by a process which may or may not amount to manufacture. And that the same also includes in all the by products; intermediary or residuary hon'ble De…

The Assistant Commissioner of Income Tax, Circle-2, Dibrugarh vs. Oil India Ltd., Dibrugarh

ITA 122/GTY/2008[2005-06]Status: DisposedITAT Guwahati26 Aug 2019AY 2005-06

Bench: Shri S.S.Godara & Dr. A.L. Saini

Section 143(3)Section 251Section 80I

…a). 26. The Revenue’s last argument is that assessee’s oil exploration activity cannot be taken “manufacture or production” as prescribed in sec. 80IC(2)(b) of the Act. Hon'ble apex court’s landmark judgment in CIT vs. N.C.Budharaja and Co. and Another (1993) 204 ITR 412 (SC) held long back that the statutory expression “produce” has wider connotation than the word “manufacture”. The former; when used in juxtaposition with the latter, brings into existence new goods by a process which may or may not amount to manufacture. And that the same also includes in all the by products; intermediary or residuary hon'ble De…

The Assistant Commissioner of Income Tax, Circle-2, Dibrugarh vs. Oil India Ltd., Dibrugarh

ITA 121/GTY/2008[2004-05]Status: DisposedITAT Guwahati26 Aug 2019AY 2004-05

Bench: Shri S.S.Godara & Dr. A.L. Saini

Section 143(3)Section 251Section 80I

…a). 26. The Revenue’s last argument is that assessee’s oil exploration activity cannot be taken “manufacture or production” as prescribed in sec. 80IC(2)(b) of the Act. Hon'ble apex court’s landmark judgment in CIT vs. N.C.Budharaja and Co. and Another (1993) 204 ITR 412 (SC) held long back that the statutory expression “produce” has wider connotation than the word “manufacture”. The former; when used in juxtaposition with the latter, brings into existence new goods by a process which may or may not amount to manufacture. And that the same also includes in all the by products; intermediary or residuary hon'ble De…

The Assistant Commissioner of Income Tax, Circle-2, Dibrugarh vs. Oil India Ltd., Dibrugarh

ITA 120/GTY/2008[2003-04]Status: DisposedITAT Guwahati26 Aug 2019AY 2003-04

Bench: Shri S.S.Godara & Dr. A.L. Saini

Section 143(3)Section 251Section 80I

…a). 26. The Revenue’s last argument is that assessee’s oil exploration activity cannot be taken “manufacture or production” as prescribed in sec. 80IC(2)(b) of the Act. Hon'ble apex court’s landmark judgment in CIT vs. N.C.Budharaja and Co. and Another (1993) 204 ITR 412 (SC) held long back that the statutory expression “produce” has wider connotation than the word “manufacture”. The former; when used in juxtaposition with the latter, brings into existence new goods by a process which may or may not amount to manufacture. And that the same also includes in all the by products; intermediary or residuary hon'ble De…

Mistry Construction Co. Pvt. Ltd, Mumbai vs. ACIT Cen Cir 41, Mumbai

In the result, the appeal of the assessee is allowed

ITA 6557/MUM/2013[2006-07]Status: DisposedITAT Mumbai13 Jun 2019AY 2006-07

Bench: Sri Mahavir Singh, Jm & Sri Nk Pradhan, Am

For Appellant: Shri V Mohan, ARFor Respondent: Ms. Jothi Lakshmi Nayak, DR
Section 133ASection 143(3)Section 153Section 154Section 154(3)Section 32(1)(ii)Section 92E

…T(A) also confirmed the action of the AO. The CIT(A) relied on the decisions of Hon’ble Supreme Court in the cases of (i) CIT vs. N.C. 5 Bhuddhiraja & Co. (ii) CIT vs. Pressure Piling Co. (India) P. Ltd. (iii) CIT vs. Shankar Construction Co. & Others (1993) 204 ITR 412 (SC) that the construction company is not manufacturer or producer. Aggrieved, assessee came in appeal before Tribunal. 7. Before us, the learned Counsel for the assessee relied on the decision of Hon’ble Delhi High court in the case of CIT vs. Radio Today Broadcasting Ltd. (2016) 382 ITR 42 (Delhi), wherein production of radio programmes in fav…

Shri S.K. Golcha (HUF), Jaipur vs. Assistant Commissioner of Income Tax, Jaipur

In the result, the appeals of the assessee are allowed

ITA 245/JPR/2018[1996-97]Status: DisposedITAT Jaipur10 May 2019AY 1996-97

Bench: The Hearing.”

For Appellant: Shri A.B. Dangayach (C.A.)For Respondent: Smt. Neena Jeph (JCIT)
Section 143(3)Section 80Section 80ISection 80J

…aid judgment, this Court affirmed the decision of the Karnataka High Court in the case of CIT vs. Mysore Minerals Ltd. (2001) 166 CTR (Kar) 142 : (2001) 250 ITR 725 (Kar). 19. In the case of CIT vs. N.C. Budharaja & Co. & Anr. (1993) 114 CTR (SC) 420 : (1993) 204 ITR 412 (SC), the question which arose for determination before this Court was whether construction of a dam to store water (reservoir) can be characterised as amounting to manufacturing or producing an article. It was held that the word "manufacture" and the word "production" have received extensive judicial attention both under the income-tax as well a…

Shri S.K. Golcha (HUF), Jaipur vs. Assistant Commissioner of Income Tax, Circle-2, Jaipur

In the result, the appeals of the assessee are allowed

ITA 790/JPR/2017[1998-99]Status: DisposedITAT Jaipur10 May 2019AY 1998-99

Bench: The Hearing.”

For Appellant: Shri A.B. Dangayach (C.A.)For Respondent: Smt. Neena Jeph (JCIT)
Section 143(3)Section 80Section 80ISection 80J

…aid judgment, this Court affirmed the decision of the Karnataka High Court in the case of CIT vs. Mysore Minerals Ltd. (2001) 166 CTR (Kar) 142 : (2001) 250 ITR 725 (Kar). 19. In the case of CIT vs. N.C. Budharaja & Co. & Anr. (1993) 114 CTR (SC) 420 : (1993) 204 ITR 412 (SC), the question which arose for determination before this Court was whether construction of a dam to store water (reservoir) can be characterised as amounting to manufacturing or producing an article. It was held that the word "manufacture" and the word "production" have received extensive judicial attention both under the income-tax as well a…

Income Tax Officer, Ward-5-4, Jaipur vs. Sandeep Singh Choudhary (HUF), Jaipur

In the result, the appeals of the assessee are allowed

ITA 689/JPR/2017[2012-13]Status: DisposedITAT Jaipur10 May 2019AY 2012-13

Bench: The Hearing.”

For Appellant: Shri A.B. Dangayach (C.A.)For Respondent: Smt. Neena Jeph (JCIT)
Section 143(3)Section 80Section 80ISection 80J

…aid judgment, this Court affirmed the decision of the Karnataka High Court in the case of CIT vs. Mysore Minerals Ltd. (2001) 166 CTR (Kar) 142 : (2001) 250 ITR 725 (Kar). 19. In the case of CIT vs. N.C. Budharaja & Co. & Anr. (1993) 114 CTR (SC) 420 : (1993) 204 ITR 412 (SC), the question which arose for determination before this Court was whether construction of a dam to store water (reservoir) can be characterised as amounting to manufacturing or producing an article. It was held that the word "manufacture" and the word "production" have received extensive judicial attention both under the income-tax as well a…

DCIT vs. M/S Kemwell Pvt. Ltd

In the result, this appeal of Revenue is dismissed

ITA 210/BANG/2014[2009-10]Status: DisposedITAT Bangalore12 Apr 2019AY 2009-10

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

For Appellant: Shri B.R. Renuka Prasad, AdvocateFor Respondent: Shri R.N. Siddappaji, Addl.CIT
Section 143(3)Section 43ASection 43A(1)

…s payable in the foreign country there was no question of availing tax credit in India. e) Reliance is also placed on the following case laws. i. Tarulata Sham and other 108 ITR 345 (SC) ii. Keshavji Raoji and Company 183 ITR 1 (SC) iii. Budharaja and Company 204 ITR 412 (SC) Wherein it has been held that when the wordings in the Statute are clear and specific, it has to be followed strictly without importing or assessing any other meaning or intention. Based on the above, the rebate u/s. 90 of Rs. 68,60,892/- claimed by the assessee is disallowed and added back to income”. 15.4. On appeal by the assessee, the L…

M/S Kemwell Pvt. Ltd vs. ACIT

In the result, this appeal of Revenue is dismissed

ITA 209/BANG/2014[2009-10]Status: DisposedITAT Bangalore12 Apr 2019AY 2009-10

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

For Appellant: Shri B.R. Renuka Prasad, AdvocateFor Respondent: Shri R.N. Siddappaji, Addl.CIT
Section 143(3)Section 43ASection 43A(1)

…s payable in the foreign country there was no question of availing tax credit in India. e) Reliance is also placed on the following case laws. i. Tarulata Sham and other 108 ITR 345 (SC) ii. Keshavji Raoji and Company 183 ITR 1 (SC) iii. Budharaja and Company 204 ITR 412 (SC) Wherein it has been held that when the wordings in the Statute are clear and specific, it has to be followed strictly without importing or assessing any other meaning or intention. Based on the above, the rebate u/s. 90 of Rs. 68,60,892/- claimed by the assessee is disallowed and added back to income”. 15.4. On appeal by the assessee, the L…

DCIT, Circle-10(1), Kolkata vs. M/S Indian Oil Petronas (P) Ltd., Kolkata

In the result, the appeal of the revenue is dismissed

ITA 1930/KOL/2016[2010-11]Status: DisposedITAT Kolkata15 Mar 2019AY 2010-11

Bench: Shri A.T. Varkey, Jm & Dr.A.L.Saini, Am D.C.I.T, Cir­10(1), Kolkata Vs. M/S. Indian Oil Petronas Pvt. Ltd. Pan: Aaaci5573R (अपीलाथ" /Assessee) (""यथ" / Respondent) .. Assessee/Revenue By : Shri P.K. Srihari, Cit, Ld. Dr Respondent/Assessee By : Shrid. S Damle, Fca, Ld.Ar सुनवाईक"तार"ख/ Date Of Hearing : 18/12/2018 घोषणाक"तार"ख/Date Of Pronouncement : 15/03/2019 आदेश / O R D E R

For Appellant: ShriD. S Damle, FCA, ld.ARFor Respondent: Shri P.K. Srihari, CIT, ld. DR
Section 143(3)Section 194ISection 2Section 37(1)Section 40

…ning activity for the purpose of production of mineral ores would come within the ambit of the word 'production' since ore is 'a thing', which is the result of human activity or effort. It has also been held by this Court in CIT v. N .C. Budharaja& Co. (1993] 204 ITR 412 that the word 'production' is much wider than the word 'manufacture'. It was said (page 423): The word 'production' has a wider connotation than the word 'manufacture'. While every manufacture can be characterised as production, every production need not amount to manufacture .... The word 'production' or 'produce' when used in juxtaposition wit…

ITO, Ward - 13(3), Kolkata vs. M/S. Porel Dass Water & Effluent Control Pvt. Ltd., Howrah

In the result, the appeal filed by the assessee in I

ITA 2441/KOL/2017[2013-14]Status: DisposedITAT Kolkata06 Mar 2019AY 2013-14

Bench: Shri A.T.Varkey, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1354/Kol/2015 ("नधा"रणवष" / Assessment Year: 2012-13)

For Appellant: Shri Sanjay Bhattacharya, ARFor Respondent: Shri Sanjit Kumar Das, Addl.CIT Sr. DR
Section 143(3)Section 80I

…the Act. Porel Dass Water & Effluent Control Pvt. Ltd. ITA No.2402/Kol/2016& ITANo.2441/Kol/2017 Assessment Years: 2012-13,2011-12&2013-14 14. We note that the A.O. in his order had relied on the Apex Court’s decision in the case of CIT vs NC Budhiraja & Co. [204 ITR 412] in support of his contention that the assessee was not entitled to deduction u/s 80IA(4). However, this decision of the Apex Court is distinguished and not applicable to the facts of the case under appeal. The Apex Court’s decision in NC Budharaja & Co. relates to Section 80HH of the Income Tax Act and is regarding, industrial undertakings, enga…

Porel Dass Water & Effluent Pvt. Ltd., Howrah vs. ITO, Ward 1(4)/ Kolkata, Kolkata

In the result, the appeal filed by the assessee in I

ITA 2402/KOL/2016[2011-2012]Status: DisposedITAT Kolkata06 Mar 2019AY 2011-2012

Bench: Shri A.T.Varkey, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1354/Kol/2015 ("नधा"रणवष" / Assessment Year: 2012-13)

For Appellant: Shri Sanjay Bhattacharya, ARFor Respondent: Shri Sanjit Kumar Das, Addl.CIT Sr. DR
Section 143(3)Section 80I

…the Act. Porel Dass Water & Effluent Control Pvt. Ltd. ITA No.2402/Kol/2016& ITANo.2441/Kol/2017 Assessment Years: 2012-13,2011-12&2013-14 14. We note that the A.O. in his order had relied on the Apex Court’s decision in the case of CIT vs NC Budhiraja & Co. [204 ITR 412] in support of his contention that the assessee was not entitled to deduction u/s 80IA(4). However, this decision of the Apex Court is distinguished and not applicable to the facts of the case under appeal. The Apex Court’s decision in NC Budharaja & Co. relates to Section 80HH of the Income Tax Act and is regarding, industrial undertakings, enga…

Porel Dass Water & Effluent Control Pvt. Ltd., Howrah vs. ITO, WD-13(3), Kolkata, Lucknow

In the result, the appeal filed by the assessee in I

ITA 1354/KOL/2015[2012-2013]Status: DisposedITAT Kolkata06 Mar 2019AY 2012-2013

Bench: Shri A.T.Varkey, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1354/Kol/2015 ("नधा"रणवष" / Assessment Year: 2012-13)

For Appellant: Shri Sanjay Bhattacharya, ARFor Respondent: Shri Sanjit Kumar Das, Addl.CIT Sr. DR
Section 143(3)Section 80I

…the Act. Porel Dass Water & Effluent Control Pvt. Ltd. ITA No.2402/Kol/2016& ITANo.2441/Kol/2017 Assessment Years: 2012-13,2011-12&2013-14 14. We note that the A.O. in his order had relied on the Apex Court’s decision in the case of CIT vs NC Budhiraja & Co. [204 ITR 412] in support of his contention that the assessee was not entitled to deduction u/s 80IA(4). However, this decision of the Apex Court is distinguished and not applicable to the facts of the case under appeal. The Apex Court’s decision in NC Budharaja & Co. relates to Section 80HH of the Income Tax Act and is regarding, industrial undertakings, enga…

ITO, Dehradun vs. M/S. Rudra Woodpack Pvt. Ltd., Uttrakhand

Accordingly the appeal of the revenue is therefore, dismissed

ITA 71/DEL/2016[2012-13]Status: DisposedITAT Delhi07 Feb 2019AY 2012-13

Bench: Sh. K.N.Chary & Sh. O.P. Meenaita No.71/Del./2016 : Asstt. Year : 2012-13

For Appellant: Sh. Kapil Goel, AdvFor Respondent: Smt. Naina Soin Kapil, Sr. DR
Section 133ASection 143(3)Section 2Section 80I

…products that went into their manufacture. The Assessee has also placed reliance on the following decisions:- “1. Aspinwall and Co. Ltd. vs. Commissioner of Income Tax 251 ITR 323 [2001] 2. Commissioner of Income Tax vs. N.C.Budharaja and Co and Anr. Etc. 204 ITR 412 [1993] 3. Union of India vs. Delhi Cloth and General Mills 1963 AIR 791, 1963 SCR Supl. (1) 586 4. Deputy Commissioner, Sales Tax (Law) Board of Revenue (Taxes) vs. Pio Food Packers 1980 AIR 1227, 1980 SCR (3) 1271 4 5. Indian Cine Agencies vs. Commissioner of Income Tax 308 ITR 98[2009] 6. Commissioner of Income Tax vs. Emptee Poly-Yarn Pri…

ACIT, Cir-3(2), Gangtok, Sikkim vs. M/S Unicorn Industries, Sikkim

Appeal is partly allowed in above terms

ITA 48/KOL/2016[2010-2011]Status: DisposedITAT Kolkata25 Jan 2019AY 2010-2011

Bench: Sri S.S. Godara & Sri M. Balaganesh) Assessment Year: 2010-11

Section 142(1)Section 143(3)Section 148Section 80I

…ferent. In our opinion, in view of this clause and the decision of Hon'ble Supreme Court in the case of Chowgule & Co. (supra), it cannot be held that the assessee is engaged in these units in manufacturing. 5.13 Further, in CIT Vs N.C. Budharaja & Co. (1993) 204 ITR 412 (SC), Hon'ble Supreme Court further observed that the word "production" is much wider than the word "manufacture". It was said (page 423): "The word "production" has a wide connotation than the word "manufacture". While every manufacture can be characterized as production, every production need not amount to manufacture... The word 'production' o…

ACIT, Central Circle - 1(1), Kolkata vs. M/S. Orissa Manganese & Minerals Ltd., Kolkata

In the result, the appeal filed by the Revenue is partly allowed

ITA 2153/KOL/2017[2013-14]Status: DisposedITAT Kolkata20 Dec 2018AY 2013-14

Bench: Sh. P.M.Jagtap & Sh. S.S.Viswanethra Ravi

…oduction of mineral ores would come within the ambit of the word "production" since ore is "a thing", which is the result of human activity or effort. It has also been held by this Court in CIT vs. N. C. Budharaja & Co. & Anr. (1993) 114 CTR (SC) 420 : (1993) 204 ITR 412 (SC) that the word (AYs-2009-10, 2010-11, 2012-13, 2013-14 & 2014-15) "production" is much wider than the word "manufacture". Calcutta High Court has time and again reiterated its view that the mining activity amounts to production and additional depreciation and investment allowance could not be denied on the machinery used for production in the…