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TMI Blog2016 (4) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... der is passed for the sake of convenience. 2 . To dispose of these appeals, we refer to the facts involved in AY 2010-11 being ITA No. 236/Hyd/2014. 3. Briefly the facts of the case are that the assessee filed the return of income for the AY 2010-11 on 30/09/2010 declaring a total income of Rs. 4,99,57,490/- under the normal provisions and book profits of Rs. 23,36,93,100/- u/s 115JB. In the assessment made u/s 143(3) of the Income-tax Act, 1961 (in short 'Act'), the AO determined the total income of the assessee at Rs. 23,66,50,830/- by making the following additions: 1. Disallowed the claim of deduction u/s 10B of Rs. 17,77,41,695/- 2. Additional depreciation disallowed Rs. 89,51,641/-. 4. As regards the claim of deduction u/s 10B of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntamount to manufacture or production. 6. After considering the submissions of the assessee, the CIT(A) observed that the factual position regarding the disallowance of deduction u/s 10B is same as was prevailing for the AY 2009-10. He, therefore, following the decision in AY 2009-10, held that assessee's business of cutting, sizing, polishing and slicing of granites make him eligible for claiming deduction u/s 10B of the Act. Accordingly, he allowed the claim of assessee. 7. Aggrieved, the revenue is in appeal before us raising the following grounds of appeal: "2. The ld. CIT(A) erred in holding that the assessee is eligible for exemption u/s 10B of the Act. 3. The ld. CIT(A) should have appreciated that the granite block which is cut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 10B has already been crystallised by the orders of the ITAT in Assessee's own case in earlier years upto AY. 2006-07 dt. 28-12-2012. Vide para 7 & 8, the issue was considered and allowed as under: "7. As per the latest circular No. 729 dated 1.11.1995 cutting and polished granite is eligible for deduction u/s. 80HHC of the Act as they find mention in 12th Schedule of Income-tax Act, 1961. On the reason that it was mentioned in the director's report that the Assessee has exported only rough blocks of granite, according to the Department the Assessee is not entitled for deduction u/s. 80HHC of the Act. It is also submitted before us by the DR that the Assessee has described in the sales invoices rough granite. However, it was clarif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not deny the deduction u/s.l0B of the Act on the reason that granite has not been polished. Being so, the Assessee is entitled for deduction u/s. 80HHC/ l0B of the Act on similar lines for the A.Ys. 2000-01 to 2004-05. Accordingly, the Revenue appeals in ITA No. 29 to 33/Hyd/2012 are dismissed. 8. For the assessment year 2006-07 in ITA No. 35/Hyd/12, the issue is relating to allowability of deduction u/s. l0B of the Act which is decided on similar lines as above as discussed in the above, the Revenue appeal is dismissed". 9. In view of the above, we are of the opinion that Assessee is eligible for deduction u/s. 10B, the fact of which was already acknowledged by the CIT(A) in the order for AY 2011-12. However, in AYs. 2007-08 to 2010-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tc. are not eligible since the assessee is not involved in the business of manufacture or production of an article or thing. He opined that the additional depreciation was to be allowed for an assessee who is engaged in the business of manufacture or production of any article or thing. As he held that assessee is not eligible for claiming deduction u/s 10B, disallowed the additional depreciation claimed as above. 12. The CIT(A) following the decision in AY 2009-10, allowed the assessee's appeal and directed the AO to allow the assessee's claim of additional depreciation. 13. Aggrieved, revenue is in appeal before us by raising the following ground of appeal: "4. The ld. CIT(A) ought to have appreciated the disallowance of additional depr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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