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TMI Blog2019 (9) TMI 606X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, the assessee is not a civil contractor but supplying the construction material to other companies engaged in the construction/infrastructure activity. Once the activity of the assessee is converting the large stone blocks into aggregate which is after undergoing the process of crushing then the said activity is production/ manufacturing of a new article or thing which is different/distinct from input. The outcome of the process carried out by the assessee is a new marketable product/ article or thing and therefore, the assessee is adding the value to the raw material used and converting the same into a marketable article. No error or illegality in the order of the ld. CIT(A) allowing the claim of additional depreciation on the ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this appeal of the Revenue is claim of additional depreciation disallowed by the AO was allowed by the ld. CIT(A) by holding that the assessee firm is manufacturing on its own and job work basis. The assessee is a firm and engaged in the production of GSB and aggregate during the year under consideration. The assessee purchased new plant machinery for its business activity and claimed addition depreciation U/s 32(i)(iia) of the IT Act. The AO denied the claim of additional depreciation on the ground that the assessee is a contractor of civil work and not engaged in the production or manufacture of article or thing. On appeal, the ld. CIT(A) has allowed the claim of the assessee by holding that the assessee is manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... construction and infrastructure development. The assessee established a crusher unit for production of aggregate for supply to the awarders and they have deducted tax at source for supply contract of aggregate. There is no dispute that the raw material used by the assessee is stone blocks which are crushed and converted into aggregate and used in the construction activity, therefore, the plant and machinery purchase by the assessee for carrying out the operation of manufacturing/production of aggregate is eligible for additional depreciation U/s 32 (i)(iia) of the IT Act. The ld. AR has referred to the various machinery used in the process and submitted that the entire process is divided in various stages and therefore, the activity of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crusher unit. During the year, he was awarded supply contract of aggregate from various infrastructure companies. Considering the overall facts, it is seen that assessee is deriving income from the manufacturing of aggregate on his own and on job work basis. The Assessing Officer wrongly presumed that he is contractor of civil cork. As per section 32, additional depreciation is allowable, if the assessee is engaged in the production/manufacturing of an article or thing and new machine has been acquired after 31.03.2005. 2.3.1 In the present case, the appellant has fulfilled these conditions. The Authorized Representative filed the detailed process of production and break up of various machines used in the production which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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