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TMI Blog2015 (9) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... rred in allowing the assessee's claim of deduction u/s 10B of the Act as the assessee's business activity did not amount to manufacture or production of any article or thing as evidenced in s. 10A/10B of the Act." 3. Briefly stated, the facts of the issue are as follows: The assessee, an individual, was in the business of extracting granite blocks from the quarries and exporting the same to the prospective buyers. As could be seen from the relevant records, the assessee had, furnished his returns of income for both the assessment years under appeal, initially, claiming reduction u/s 10 A (5) of the Act and, subsequently, claimed deduction for the identical sums u/s 10B of the Act. In the meanwhile, the assessee's premise was subjected to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT (A). After due consideration of the assessee's elaborate submissions as incorporated in his proceedings, the CIT (A) had allowed the assessee's appeals on the issue for both the AYs under consideration, for the following reasons, the relevant portions of which are extracted, for ready reference, as under: "4.14. Though these cases are prior to amendment to insertion of section 2(29BA) w. e. f. 1.4.2009 I am of the view that the process of extraction of rock and converting it into dimensional block is resulting block is resulting in transformation of the object or article or thing (here it is rock) into a new and distinct use and character. Hence, the provisions of s. 2(29BA) (a) read with the decision of the jurisdictional High Court an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount to splitting up or the construction or reconstruction of a business already in existence. As explained by the appellant discussed in this order, the business of M/s. Ashok Exports is on a different model and the business of the appellant is as an EOU. 4.16. The third criteria for disallowance of deduction u/s 10B is that the appellant has not satisfied the third condition that it is not formed by transfer to a new business or machinery or plant previously used for any purpose. From the copies of the ledger accounts, balance sheets and fixed account schedules of Ashok Exports and Ashok Impex, it is clear that no machinery is transferred to the business of Ashok Impex either from M/s. Ashok Exports or from M/s. Varshu Impex. The mach ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Petro Products Pvt. Ltd [40 Taxman 430] and (ii) Hon'ble Apex Court in the case of CIT v. Sesa Goa [271 ITR 331 (SC)] as they were not applicable to the facts and the circumstances of the assessee's case. In conclusion, the Ld. DR prayed that the order of the CIT (A) deserves to be set aside on the above points and that of the orders of the AO be restored. On the other hand, the ld. AR reiterated more or less what has been represented before the First Appellate Authority. In furtherance, the ld. AR had placed strong reliance on the judgment of the Hon'ble Supreme Court in the case of CIT v. Sesa Goa (supra) which was, according to the ld. AR, directly applicable to the facts of the assessee's case under consideration. 6. We have carefully ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s extraction of blocks which were dressed into dimensional blocks. He, had, accordingly, held that the ratio of the Hon'ble Supreme Court's ruling in the case of Sesa Goa (supra) was directly applicable to the facts of the assessee's case [reference: Para 4.12 of the CIT(A)'s order]. For ready reference, the relevant portion of the ruling of the Hon'ble Supreme court is extracted as under: "We are, therefore, of the opinion that extraction and processing of iron ore amounts to 'production' within the meaning of the word in section 32A(2)(b)(iii) of the Act and, consequently, the assessee is entitled to the benefit of section 32A(1) of the Act...." 7. At this point of time, we refer to the findings of the earlier Bench of this Tribunal in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... process, while the mere mining of lime stone and marble and cutting the same before it was sold in the market could not be so considered......" 8. After taking into account all the above facts into consideration and also the ruling of the Hon'ble Supreme Court and the earlier Bench of this Tribunal (supra), we are of the view that, as rightly observed by the CIT (A), though the case [CIT v. Sesa Goa Ltd] was prior to amendment to insertion of s. 2 (29BA) of the Act w. E.f. 1.4.2009, the process of extraction of rock and converting it into dimensional block had resulted in transformation of the object or article or thing into a new and a distinct object or thing having a different name, character and use. Thus, the dimensional block was a d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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