PRODUCTION & MANUFACTURE
SUPREME COURT OF INDIA while deciding the Civil appeal no.8036 of 2009 with C.A.Nos. 8037-8044 of 2009, on 2.12.09, in re: INCOME TAX OFFICER, UDIAPUR vs ARIHANT TILES & MARBLES (P) LTD observed as follows:-
QUOTE : In the present case, we have extrated in detail the process undertaken by each of the respondents before us. In the present case, we are not concerned only with cutting of marble blocks into slabs. In the present case we are also concerened with the activity of polishing and ultimate conversion of blocks into polished slabs and tiles. What we find from the process indicated hereinabove is that there are various stages through which the blocks have to go through before they become polished slabs and tiles. In the circumstances, we are of the view tat on the facts of the cases in hand, there is certainly an acitivitywhich will come in the category of MANUFACTURE or PORDUCTION under Section 80 IA of the Income Tax Act. As stated hereinabove, the judgement of this Court in AMAN MARBLE INDUSTRIES (PVT). LTD was not required to construe the word PRODUCTION in addition to the word MANUFACTURE. One has to examine the scheme of the Act also while deciding the question as to whether the activity constitutes MANUFACTURE or PRODUCTION. Therefore, looking to the nature of the activity stepwise, we are of the view that the subject activity certainly constitutes MANUFACTURE or PRODUCTION in terms of Section 80 IA. In this connection, our view is also fortified by the following judgements of this Court which have been fairly pointed out to us bt learned counsel appearing for the Department. UNQUOTE
[for full text of the judgement please visit http://www.taxesinindia.com and click on the citation taxind_2009_sc_ca_8036]
SUPREME COURT JUDGEMENT
VENKATRAMAN RAGGHUPATHY, Web admin.
