Itxa/308/2006 Of The Commissioner Of Income-Tax,Mumbai,City-17 v. M/S Arya Steel

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 308 OF 2006WITHINCOME TAX APPEAL NO. 323 OF 2006 The Commissioner of Income Tax ... AppellantMumbai City - 17, Mumbai. V/s. M/s. Arya Steel ... Respondent Mr. R.G. Bhatt for the appellant.Mr. A.K. Jasani for the respondent. CORAM : H.L. GOKHALE &V.R. KINGAONKAR,JJ.DATED : 1st August, 2006 P.C. .Mr. Bhatt appears for the appellant and Mr.Jasani for the respondents. Whereas the appeal No.308 of 2006 is concerning the Assessment Year 1993-94and appeal No. 323 of 2006 is about the AssessmentYear 1992-93. The question which is sought to beraised is whether the respondent is eligible to adeduction u/s 80HH and 80I of the Income Tax Act. Therespondent is engaged in ship breaking activity andthe submission of the revenue is that it does notamount to a manufacturing activity. As far as thisaspect is concerned, in the case of Ship Scrap TradersV/s. Commissioner of Income Tax reported in 251 ITR806, a Division Bench of this Court taken a view that ship breaking needs expertise and it results intoproduction of articles and therefore, it amounts to amanufacturing activity. This view has been followedby the Tribunal in both the cases. Therefore, thereis no need to go into this question once again in thecase of respondent here.Both the appeals aredismissed. [H.L. GOKHALE, J.] [V.R. KINGAONKAR, J.]