Trimex Sands (P.) Ltd. v. PCIT (2024) 204 ITD 435 (Chennai) (Trib.)

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Not earned any exempt income-Additional depreciation-Allowed in earlier year-Manufacture-Extraction of minerals from beach sand involved change in non-living physical object/article into a new and distinct object/article having different name and use-Activities amounts to manufacture-Revision is not valid. [S. 14A, 32(1)(ii), 32AC]

Held that where assessee had not earned any exempt income during year, no disallowance under section 14A was called for. Additional depreciation was allowed for the Assessment  year 2012-13. Held that extraction of minerals from beach sand involved change in non-living physical object/article into a new and distinct object/article having different name and use, activities carried out by assessee amounted to manufacture and thus, claim of assessee for deduction under section 32AC was in order. Revision order is quashed. (AY. 2015-16)

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