9911796707
|
Home
Issues involved: Appeal against CIT(A) order regarding eligibility for exemption u/s 10B of IT Act for business involving conversion of gold bars into jewelry for foreign customers.
Summary: The Revenue challenged CIT(A)'s decision that the assessee, converting gold bars into jewelry for foreign customers, was entitled to exemption u/s 10B. Revenue argued ownership of gold bars by foreign parties meant no manufacturing occurred. Assessee's representative countered, highlighting the process of converting gold into jewelry involving labor and chemical processes. Citing legal precedents, the representative argued that ownership of raw material was not a prerequisite for claiming the exemption. The Tribunal noted the distinct nature of primary gold as raw material and gold jewelry as the finished product, emphasizing the manufacturing process involved in converting gold bars into jewelry. It deliberated on whether ownership of raw material was necessary for claiming exemption u/s 10B. Considering the provisions of the Act and legal precedents, the Tribunal concluded that the assessee, despite not owning the raw material, was engaged in manufacturing and exporting articles, thus eligible for the exemption u/s 10B. Therefore, the Tribunal upheld CIT(A)'s decision, dismissing the Revenue's appeal.
|
