2012 (4) TMI 757

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..... The appeal of the Revenue is directed against the Order dated 02-12-2009 passed by the Ld. CIT(A)-IV, Kochi and it relates to the assessment year 2006-07. 2. The solitary issued urged in this appeal is whether the activities carried out by the assessee can be termed as manufacture or production of an article or thing in the context of allowing additional depreciation u/s. 32( .....

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..... ew product in order to term the activities of the assessee as manufacture or production. Accordingly, he disallowed the additional depreciation claimed by the assessee. The order of the Assessing Officer was challenged before the Ld. CIT(A) and the first appellate authority allowed the claim of the assessee. Aggrieved by the order of the Ld, CIT(A), the Revenue is in appeal before us. 4. .....

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..... performing various processes, they become fit for human consumption. Accordingly, he submitted that the activity carried on by the assessee results in a commercially distinct product and hence such activities fall in the category of manufacture or production of an article or thing. 5. We have heard the rival contentions and carefully perused the record. We notice that the Hon ble Supreme .....

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..... nataka Anr. (1986) 63 STC 239 (SC), where it has been held that processed or frozen shrimps and prawns are commercially regarded as the same commodity as raw shrimps and prawns. When raw shrimps and prawns are subjected to the process of cutting of heads and tails, peeling, deveining, cleaning and freezing they do not cease to be shrimps and prawns and become other distinct commodities. There is .....

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..... decision of the Hon ble Apex Court cited above, we hold that the processing of marine products does not involve production and hence, the assessee is not entitled to additional depreciation u/s. 32(1)(iia) of the Act. Accordingly, we set aside the order of the Ld. CIT(A) on this issue. 8. In the result, the appeal of the Revenue is allowed. Pronounced accordingly on 27-04-2012 .....

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