GRACE EXPORTS Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THIS appeal under Section 260 -A of the Income Tax Act, 1961 ('the Act') is directed against the judgment and order dated 13.07.2009 as passed by the Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur ('the ITAT') in ITA No.357/JU/2008 for the assessment year 2004 -05. This appeal has been admitted on the following substantial questions of law: -

(2.) THE factual aspects so far relevant for the purpose of determination of the questions aforesaid could be noticed in brief as follows: The appellant -assessee, said to be engaged in the business of manufacture and export of finished marble slabs and tiles, in its return for the assessment year 2004 -05 claimed exemption under Section 10 -B of the Act in respect of its Unit -2 as being 100 percent Export Oriented Undertaking with the essential submissions that it had been engaged in the activity of manufacturing, producing and processing of marble slabs and tiles from its own plants and machineries and whole of the manufactured material was sold outside the country. The claim of the assessee before the Assessing Officer was that the definition as given in EXIM Policy would be applicable in respect of 'manufacturing' for the purpose of Section 10 -B of the Act but the same was not accepted by the Assessing Officer with the observations that the conversion of marble blocks by sawing into slabs, tiles and polishing did not amount to manufacture of article or things while relying, inter alia, on the decision of the Hon'ble Supreme Court in Aman Marble's case: 257 ELT 393 and that of this Court in Lucky Minmet's case: 226 ITR 245. The Assessing Officer also relied on a decision of ITAT in ITA No.86 -87/JU/2004 in the case of Arihant Tiles and Marble.

(3.) ANOTHER issue involved in the matter had been in relation to the claim of benefit under Section 80 -HHC of the Act that had also been decided by the CIT(A) in favour of the assessee but the ITAT proceeded to rule in favour of the revenue. The amount involved on this score had been Rs.33,426/ - and the learned counsel for the appellant has frankly not pressed on this ground for meagre financial implication and further for the fact that on the other part of issue, the revenue has not filed any appeal. Thus, the claim for benefit under Section 80 -HHC would not require adjudication in the present matter.