Commissioner Of Income-Tax v. Mysore Minerals Ltd.

K. Shivashankar Bhat, J.:— The question referred under section 256(1) of the Income-tax Act, 1961, in respect of the assessment year 1982–83 reads thus:

“Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that extraction of granite from a quarry and cutting the same into various sizes and polishing them, was one of manufacture or production of an article or thing, to be entitled to investment allowance under section 32A?”

2. The principle applicable is governed by the ratio of the decision in 1. Shankar Construction Co. v. 2. Shankaranarayana Construction Co., [1991] 189 ITR 463 (Kar).

3. In fact, in another case, this court has already considered the applicability of the principle to the case of extraction of granite.

4. Following the aforesaid decision, the question is answered in the affirmative and against the Revenue.