COMMISSIONER OF INCOME TAX Vs. JANAK RAJ BANSAL

JUDGEMENT

(1.) ALL the aforesaid appeals are being disposed of by this common judgment since the following identical questions of law are involved in all the appeals : "(i) Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal was right in law in holding that converting limestone into limestone powder was a manufacturing activity and income derived from such activity was thus eligible for deduction under s. 80 -IA/80 -IB of the IT Act, 1961 ? (ii) Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal was right in relying on the judgment of Hon'ble Supreme Court in the case of Lucky Minmat (P) Ltd. vs. CIT (2000) 162 CTR (SC) 404 : (2000) 245 ITR 830 (SC) wherein only an observation has been made by the Hon'ble Court to the effect that conversion into lime and lime dust or concrete by stone crushers could be considered to be a manufacturing process without considering the subsequent decision and not relying on the decision of the Hon'ble Supreme Court in the case of Sacs Eagles Chicory vs. CIT (2002) 175 CTR (SC) 201 : (2002) 255 ITR 178 (SC) wherein it has been held that mere crushing of chicory roots into chicory powder cannot be a manufacturing process -

(2.) THE basic question which arises is whether the process of converting limestone into limestone powder is a manufacturing activity within the meaning of ss. 80 -IA and 80 -IB of the IT Act, 1961.

(3.) IN Black's Law Dictionary (5th Edition), the word "manufacture" has been defined as, "the process or operation of making goods or any material produced by hand, by machinery or by other agency; by hand, by machinery, or by art. The production of articles for use from raw or prepared materials by giving such materials new forms, qualities, properties or combinations, whether by hand labour or machine".