9911796707
TMI Blog1997 (6) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... ies. Before exporting the stones, a block of granite rocks are cut into various sizes in different dimensions, polish rough stone pieces of granite and after completion of process of cutting, dressing and polishing and removing various natural flaws such as colour variations, grain variations, joints, moulds, air lines, etc., the same are traded and exported. The Department treated the trading activity of the assessee as belonging to mining and held that the same is not qualified for deduction under section 80HHC. The CIT for the assessment year 1987-88 started proceeding under section 263 and set aside the assessment order by his order dated 8-8-1989 against which the assessee preferred an appeal before this Tribunal. This Tribunal, vide i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Besides these, he also relied upon the Circular issued by the CBDT vide No. 729 dated 1-11-1995. The learned counsel for the assessee also relied upon the decision of the Jurisdictional High Court in the case of M.R. Gopal. 5. We have heard the rival parties and have perused the materials relied upon by both the parties. The assessee is extracting granite from hills and after cutting the rough edges, processing it in different sizes, shapes, colours, etc., which amounts to manufacturing or production of articles or of things. The word manufacture has not been defined in the IT Act. But it can be defined as production of articles for use from raw or proper materials by giving these materials new forms qualities, properties or combinations, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e dumpers used by it in its making activities. 6. It is also worth noting to go through the Circular No. 729 of 1-11-1995 of the CBDT, which is reproduced below :-- "Although minerals are not entitled to benefit under section 80HHC, the profits derived from the expert of granite blocks would attract the benefit of section 80HHC. The Board is of the view that while granite simpliciter can alone be considered as mineral, any process applied to the granite would deprive the quality of rough mineral from the dimensional commodity. When rough granite is cut to dimensional blocks of' uniform colour and size it not only undergoes mechanical process of cutting but also a certain amount of dressing and polishing is involved to remove various nat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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