M/S.aska Sales Pvt. Ltd v. Income Tax Appellate Tribunal, Mumbai & Ors

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORIGINAL SIDE INCOME TAX APPEAL NO. 646 OF 2003 M/s.Aska Sales Pvt. Ltd.vs.1. Income Tax AppellateTribunal, Mumbai & ors. Appellants Respondents Mr.M.C.Shah i/b. Mr.Ajay Rao for the appellants. P.C. CORAM: R. M. LODHA &J.P.DEVADHAR,JJ. DATED: 29th November 2004 Heard Mr.M.C.Shah, the learned counsel for the appellants. 2. The Supreme Court in the case of Commissioner of Income Tax v. Gem India Manufacturing Co., 249 ITR 307 observed thus: "Section 80-I gives a deduction in respect ofprofits and gains from industrial undertakingswhich, among other conditions, manufacture orproduce any article or thing. The question,therefore, is whether the assessee, in cuttingand polishing diamonds manufactures orproduces any article or thing.The Tribunal took the view that it did becausein "common parlance and commercial sense rawdiamonds are not the same thing as polishedand cut diamonds. The two are differententities in the commercial world. Though thechemical composition remains the same thephysical characteristics of shape and class,etc., are substantially different". It wouldappear that no material had been placed on the allowed because kerfing activity is not manufacturing activity. 4. We do not find any legal infirmity in the order of the Tribunal. 5. No substantial question of law arises. 6. The appeal is dismissed in limine. (R.M.LODHA,J.) (J.P. DEVADHAR,J.)