2014 (10) TMI 744

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..... re" is that the word "production" is wider than the word "manufacture" - the word "production" cannot derive its colour from the word "manufacture” - the word "production" is wider than the word "manufacture" - the word "production" has a wider connotation than the word "manufacture" - the Tribunal was right in allowing the deduction u/s 80HH and 80-I to the assessee holding that the ship breaking activity gave rise to the production of a distinct and different article - ship breaking activity gave rise to the production of a distinct and different article and therefore the deduction u/s 80HH and 80-I is required to be given – thus, the order of the Tribunal is upheld – Decided against Revenue. - Tax Appeal No. 60 of 2013, Tax Appeal No.61 .....

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..... upon a decision of the Tribunal, Mumbai. 3. On appeal before the Tribunal by the revenue, by impugned judgment and orders, the Tribunal has held that ship breaking activity gives rise to manufacture and production of altogether a new article and hence the undertaking is entitled to deduction under sections 80HH and 80-I of the Act. 4. Being aggrieved and dissatisfied with the impugned orders passed by the Tribunal, the revenue has preferred the present Tax Appeals for consideration of the aforesaid substantial question of law. 5. The issue involved in the present Tax Appeals is now not res integra in view of the decision of the Honble Supreme Court in the case of Vijay Ship Breaking Corporation and Others vs. C.I.T reported in (20 .....

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..... effort and work. It is important to note that the word new is not used in the definition of the word produce . 9. Secondly, the judgment of the Bombay High Court in the case of Ship Scrap Traders stands affirmed by the judgment of this Court in the case of CIT v. Sesa Goa Ltd. [2004] 271 ITR 331. In that case, the question arose before a Bench of three Judges of this Court was as to whether extraction and processing of mineral ore amounts to production within the meaning of the word in section 32A(2)(b)(iii) of the 1961 Act? It was held that the word production is wider than the word manufacture . It was held that the word production has a wider connotation than the word manufacture . It was further held that the mined ore need .....

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