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TMI Blog2006 (2) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... at the assessee engaged in export of granite is eligible for deduction under section 80HHC for the assessment years 1987-88 and 1988-89. - - - - - Dated:- 21-2-2006 - Judge(s) : P. D. DINAKARAN., P. P. S. JANARTHANA RAJA. JUDGMENT The judgment of the court was delivered by P.D. Dinakaran J.- At the instance of the Revenue, the Appellate Tribunal has stated the case and referred to us the following question of law: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that the assessee engaged in export of granite is eligible for deduction under section 80HHC for the assessment years 1987-88 and 1988-89?" When the matter came on January 31, 2006, this court pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act were available, provided other conditions for the allowance of these deductions were fulfilled, directed the Assessing Officer to allow the admissible deduction under section 80HHC of the Act accordingly. On appeal by the Revenue, the Tribunal confirmed the order of the Commissioner of Income-tax (Appeals). Learned senior standing counsel for the Revenue submits that the question of law raised in this appeal is covered in favour of the Revenue by the decisions in: (i) CIT v. Pooshya Exports P. Ltd. [2003] 262 ITR 417 (Mad); and (ii) Gem Granites v. CIT [2004] 271 ITR 322 (SC). At this juncture, it is apt to refer section 80HHC as it then stood as follows: "Section 80HHC: Deduction in respect of profits retained for exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ] 237 ITR 131 wherein it was held: "The word 'minerals' in sub-section (2)(b) of section 80HHC must be read in the context of 'mineral oil' and 'ores' with which it is associated. It seems to us that these words taken together are intended to encompass all that may be extracted from the earth. All minerals extracted from the earth, granite included, must, therefore, be held to be covered by the provisions of sub-section (2)(b) of section 80HHC, and the exporter thereof is, therefore, disentitled to the benefit of that section." This court in CIT v. Pooshya Exports P. Ltd. [2003] 262 ITR 417, after referring to the relevant provision of the statute, i.e., section 80HHC of the Income-tax Act, held that, by virtue of the expression "the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the unamended section 80HHC(2)(b) cut and polished granite would also be a mineral. The introduction of the phrase 'other than' in clause (b) of subsection (2) of section 80HHC in 1991 in our opinion, indicates the carving out of a specific class from the generic class of 'minerals and ores'. This means, that were it not for the exception, the specified processed minerals and ores would have been covered by the words 'minerals and ores'. It also indicates that only the 'minerals and ores' subjected to the process of cutting and polishing would be entitled to the benefit of section 80HHC meaning thereby that all other species of processed minerals and ores would continue to be covered by the general exclusion applicable to the generic c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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