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TMI Blog2014 (12) TMI 478X X X X Extracts X X X X X X X X Extracts X X X X ..... it has to follow that mining activity for the purpose of mineral oil would come into within the ambit of the word 'production', since ore is "a thing", which is the result of human activity or effort - extraction and processing of iron ore amounts to "production" within the meaning of the word in section 32-A(2)(b)(iii) and consequently the Assessee was entitled to benefit of section 32-A(I) - If the consortium partner was undertaking an identical activity, and was allowed the deduction, the Tribunal’s order is upheld. Site restoration expenses or abandonment cost treated as an ascertained liability – Held that:- The site restoration expenses or abandonment cost was treated as an ascertained liability –it was deleted from the computatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue was that the Assessee was neither engaged in commercial production nor any refining of mineral oil. The extraction of the said oil, therefore, does not result in any new product or new commodity coming into existence and the product sold and one extracted is identical. 4. The Tribunal in rejecting the ground of the Revenue upheld the order of the Commissioner. It held that the activity of the Assessee is identical to the one undertaken by other Assessee namely Hindustan Oil Exploration Co. Ltd. There was a consortium of such Corporations, of which the present Assessee was a part. In the case of Hindustan Oil Exploration Co.Ltd. v/s.CIT in ITA No.179/Mum/2007, on 28 December 2012 the Tribunal considered an identical issue. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal then neither acted perversely nor did it commit any error of law apparent on the face of the record in following and applying its own order to the Assessee before us. 5. We are surprised that the view which is imminently possible and cannot be termed as unreasonable or perverse is being questioned before us by the Revenue. It is unfortunate that the Revenue officials, often very senior, unmindful of the damage that they cause to larger public interest by indulging in fruitless litigations, file frivolous Appeals to this Court and burden this Court unnecessarily. All this is done at the cost of the public exchequer. We have not been able to stop this trend and despite very harsh criticism and order imposing heavy costs. We do not kno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Production Technology. It is in these circumstances, and holding that explanation of this institute is in accordance with the view and guidelines issued by the Chartered Accountants of India that the Tribunal upheld the order of the Commissioner even on this issue. 8. Therefore, it is only to highlight as to how the Revenue questions and repeatedly, such possible conclusion that we referred to these facts and circumstances regarding this Assessee in detail. This is one more claim or question and which is raised before us. Even this cannot be said to be a substantial question of law as the Tribunal's view and that of the Commissioner relying on the above material can hardly be termed as perverse. 9. As result of the above discussi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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