9911796707
TMI Blog1984 (6) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... ess of manufacturing of rice and sale thereof. Before the ITO, the assessee claimed relief under s. 32A. The plea of the assessee was not accepted by the ITO on the ground that the higher authorities have treated the rice mill as a non-manufacturing concern and keeping in view the finding given by the higher authorities in the case of M/s Sri Ramakrishna Boiled and Raw Mill (ITA No. 5-TNK/81-82 dt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of law. 4. Not satisfied with the order passed by the AAC, the Department is in appeal before us. Before us, the ld. departmental representative submitted that the AAC erred in holding that the rice mill is an industrial undertaking when the manufacturing of goods does not exist in a rice mill. It was further submitted that the AAC erred in allowing relief under s. 32A of the IT Act. 5. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ec. 32A(2) (ii) requires that the machinery or plant should be used in the business in construction, manufacture and production of any one or more articles or things specified in the 9th Schedule and (111) in a small scale industrial undertaking for the purpose of business of manufacturing or production of any other articles or things. The question as arisen in this appeal came up for consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C) wherein the Supreme Court held that paddy and rice are two distinct commodities and the milling of paddy involves a manufacturing process. By respectfully following the above said judgment of the Supreme Court, as also the order of the Tribunal, we hold that the assessee is a manufacturing concern entitled to relief under s. 32A of the IT Act. Accordingly, we direct the ITO to revise the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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