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TMI Blog2014 (11) TMI 807X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of a distinct and different article and the assessee is entitled to deduction u/s 80HH and 80-I – thus, the order of the Tribunal is upheld – Decided against revenue. - INCOME TAX REFERENCE NO. 26 of 2003 - - - Dated:- 7-11-2014 - MR KS JHAVERI AND MR. K.J.THAKER, JJ. FOR THE APPELLANT : MRS MAUNA M BHATT, ADVOCATE JUDGEMENT Per: K S Jhaveri: 1. The following question has been referred by the Income Tax Appellate Tribunal, Ahmedabad under Section 256(1) of the Income Tax Act, 1961 arising out of the Tribunal s order dated 08.03.1995 in ITA Nos. 4495/Ahd/1990 4496/Ahd/1990 for the Assessment Years 1987-88 and 1988- 89: Whether, the Appellate Tribunal is right in law and on facts in holding that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned judgment for the following reasons: 8. Firstly, in the case of Ship Scrap Traders v. CIT [2001] 251 ITR 806, the Bombay High Court has analysed the entire ship breaking activity, the articles which emerged from that activity, the various steps which are required to be undertaken for ship breaking activity and, consequently, after placing reliance on the judgment of this Court in NC Budharaja Co. s case, it has held that the ship breaking activity resulted in production of articles which emerged when the ship breaking activity stood undertaken. In our view, the important test which distinguishes the word production from manufacture is that the word production is wider than the word manufacture as held in N.C. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duct and, consequently, there was no production. This argument has been specifically rejected in Sesa Goa Ltd. s case. 10. For the aforestated reasons, therefore, we are of the view that the Tribunal in the present case was right in allowing the deduction under sections 80HH and 80-I to the assessee holding that the ship breaking activity gave rise to the production of a distinct and different article. Accordingly, the said question is answered in favour of the assessee and against the Department. 5.1. In the aforesaid decision the Hon ble Supreme Court has held that ship breaking activity gave rise to the production of a distinct and different article and therefore the assessee is entitled to deduction under sections 80H ..... X X X X Extracts X X X X X X X X Extracts X X X X
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