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TMI Blog2014 (4) TMI 1156X X X X Extracts X X X X X X X X Extracts X X X X ..... n going into the merits of the dispute, when such an exercise was not permissible in such an appeal. The learned Counsel has taken us through the impugned order passed by the ITAT and pointed out that there is a jurisdictional error committed by the Tribunal to go into the merits of the dispute. The learned Counsel as such points out that there is a substantial question of law which arises for consideration in this appeal on that count. 4. On the other hand, Shri A.F. Diniz, learned Counsel appearing for the respondent has pointed out that the only issue which arises, is whether the activity carried out by the respondent-Company is a manufacturing activity falling within the provisions of Section 32(1)(iia) of the Income Tax Act, 1961 to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould come within the armpit of the word "production" since ore is "a thing", which is the result of human activity or effort. It has also been held by this court in CIT v. N.C. Budharaja and Co. : [1993] 204 ITR 412 (SC) that the word "production" is much wider than the word "manufacture". It was said : "The word production has a wider connotation than the word 'manufacture'. While every manufacture can be charaterised as production, every production need not amount to manufacture. The word 'production' or 'produce' when used in juxtaposition with the word 'manufacture' takes in bringing into existence new goods by a process which may or may not amount to manufacture. It also takes in all the by-products, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of Gabriel Indian Limited 203 ITR 108. We are also of a view that when AO has made the inquiry and allowed the additional depreciation on machinery and windmill. An order cannot be termed as erroneous unless it is not in accordance with the law. We find that assessee is entitle to additional depreciation on machinery as per the decision of Hon'ble Supreme Court in the case of CIT v. Sesa Goa Ltd, 271 ITR 331 as well as assessee is entitle additional depreciation on windmill operation as per the decision of Madras High Court in the case of CIT v. V T M Limited, 319 ITR 336. When AO has taken one of the possible view the power of revision u/s. 263 cannot be exercised. This view is supported by the decision of Hon'ble Supreme Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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