JUDGMENT judgment of court was delivered by R. Sudhakar J.-The above tax case (appeals), filed by Revenue as against orders of Income-tax Appellate Tribunal were admitted by this court on following substantial questions of law: "T. C. (A.) Nos. 2100 to 2102 of 2006 and 232 of 2007 1. Whether, in facts and in circumstances of case, Tribunal was right in holding that assessee was covered by item (x) of Schedule XII and was eligible for deduction under section 80HHC, and 2. Whether, in facts and in circumstances of case, Tribunal was right in holding that washing, chipping would result in transferring quartz and feldspar into'processed minerals' under Schedule XII, when Schedule specifically mentions said minerals should be pulverised and micronised? T. C. (A.) Nos. 2306 2307 and 396 of 2006 "1. Whether, in facts and in circumstances of case, Tribunal was right in holding that exporter of manually washed/ chipped quartz and feldspar is eligible for deduction under section 80HHC? 2. Whether, in facts and in circumstances of case, activity of manual washing/chipping of quartz and feldspar would fall under item (x) to Schedule XII for purpose of deduction under section 80HHC?" brief facts, common to all above tax case (appeals) are as follows: assessment involved in above tax case (appeals) are for assessment years 1991-92, 1992-93, 1994-95, 1996-97, 1997-98, 1998-99 and 2001-2002, respectively. assessee is exporter of ores, quartz, feldspar, etc. He claimed deduction under section 80HHC of Incometax Act in respect of profits retained for export business. Assessing Officer, while completing assessment under section 143(3) of Income-tax Act, denied benefit as claimed by assessee and reasons given by Assessing Officer in assessment order in respect of assessment year 1991-92 (T. C. (A.) No. 2100 of 2006) is that feldspar exported by assessee and consequent benefit under section 80HHC will be available only if such mineral is exported in pulverised and micronised form. He rejected assessee's plea that goods exported would fall under item (x) of Twelfth Schedule together with Explanation as cut and polished mineral. details of process as explained by assessee has been recorded in assessment order itself. Nevertheless, Assessing Officer considered issue on two grounds viz., (i) as to whether there was any processing, and (ii) whether provisions contained in Twelfth Schedule would apply to assessee's case. Assessing Officer came to conclusion that various methods of processing undertaken by assessee did not qualify for benefit of section 80HHC primarily on ground that feldspar should be exported in pulverised and micronised form in terms of item No. (i) in Twelfth Schedule. For better clarity, reasoning as set out by Assessing Officer, reads as follows: "(iii) assessee has claimed deduction under section 80HHC to tune of Rs. 86,09,977 as per provisions of section 80HHC(2)(b). Section 80HHC does not apply to minerals and ores other than processed minerals and ores as specified in Twelfth Schedule. As per Twelfth Schedule, dealing with processed minerals and ores, deduction under section 80HHC is available in respect of pulverised or micronised barytes, calcite, steatile, prophylite, wollanasonite, zircon, betonite, red or yellow oxide, red or yellow ochre, talc, quartz, feldspar, silica powder, granet, silliminite, fireclay, ballaclay, manganese dioxide ore, etc. assessee has stated that name of quartz and feldspar is mentioned in Twelfth Schedule and, hence, he will be entitled for deduction under section 80HHC. He has also given notes on his claim stating that quartz is mineral which is mined by open cast mining operations. mining operations are quasi-mechanical. It is also stated by assessee that drilling is done by compressors and blasted mechanically then chipping is done manually. It is also stated that while other minerals like iron, etc., are mined mechanically and then loaded straightaway for export, quartz and feldspar are not exported in mined form. As such assessee claimed that it is partially processed by manual. It was also stated by assessee that other minerals are sampled for chemical commodities whereas quartz and feldspar are analysed for size, selection and purity apart from chemical content. It is also stated by representative that existing firm is exporter of processed minerals falling under items Nos. (i) to (x) of Twelfth Schedule and clauses (a), (e) and (g) of said Explanation to said Schedule are allowable for deduction under section 80HHC(2)(b)(ii). Basically there are two questions to be answered order to allow assessee's claim of deduction under section 80HHC. (i) whether there is any processing (ii) whether provisions contained in Twelfth Schedule will apply to assessee's case. Merely because assessee washes, chippers and washes stone manually, it cannot be considered as'processing' because Twelfth Schedule stipulates that there should be pulverising or micronising of quartz and feldspar. These activities are not carried on by assessee during year under review. These activities are carried on by assessee in their godown is through some manual labourers who are taking quartz in basket dipping it in water for washing purposes and impurities are chipped by human manually. It is also seen from records of assessee that assessee has not installed any machinery during year to call it as mechanical process. Moreover, assessee do not come under item (i) or (x) of Twelfth Schedule as claimed by assessee for reason (i) pulverised or micronised feldspar, quartz are not exported. (ii) Secondly combined activity of cut and polished minerals is not happening in assessee's case. Just because name quartz, feldspar appear in Twelfth Schedule assessee cannot take it as advantage to claim relief under section 80HHC. word'processing' appears in Twelfth Schedule only in term of 2 and 3 and not in respect or item No. 1. Incidentally so long as assessee did not export pulverised and micronised quartz and feldspar, assessee is not entitled for claim under section 80HHC. Hence, assessee's claim is negatived and addition on this score works out to Rs. 86,09,977 which is added to income returned." On appeal at instance of assessee, Commissioner of Incometax (Appeals) took view that it is not in dispute that assessee did not export feldspar in pulverised or micronised form but nature of goods exported would fall under definition as mineral and it would satisfy requirement of processed mineral or ore as defined under item (x) of Twelfth Schedule, namely, cut and polished mineral. He further held that quartz and feldspar are minerals and if one of conditions of Twelfth Schedule is satisfied, benefit of section 80HHC would automatically apply. reasoning given by Commissioner of Incometax (Appeals) reads as follows: "11. It is mentioned specifically that quartz and feldspar exported in pulverised or micronised will qualify for deduction under section 80HHC. This condition is obviously not satisfied in case of appellant. There is no other category where quartz and feldspar are specifically mentioned in Schedule. But item (x) of Twelfth Schedule mentions cut and polished minerals and rocks including cut and polished granite also as qualified items. Quartz and feldspar are minerals (vide Chambers 20th Century Dictionary). Quartz and feldspar exported here are cut from quarries and polished. Therefore, items would certainly come under item (x) of Twelfth Schedule. Once this condition is held to be satisfied, what is to be examined is whether this can be called processed minerals as per requirement of section 80HHC(2)(b) read with Twelfth Schedule to Income-tax Act. As per clause (d) of Explanation to Twelfth Schedule'process' means cutting and polishing. There is no requirement that this has to be done with help of machinery or power. Thus, considering totality of facts and circumstances of case, I am of opinion that appellant, during relevant accounting period, was engaged in export of goods and merchandise qualifying for deduction under section 80HHC. Thus, it will be entitled to deduction of Rs. 86,09,977 under section 80HHC of Act for said year. I direct accordingly." Being aggrieved by order of Commissioner of Income-tax (Appeals), Revenue pursued matter before Income-tax Appellate Tribunal. Tribunal, by brief order, relying upon decision of Tribunal in case of Asst. CIT v. G. T. C. Enterprises [2003] 87 ITD 188 (Chennai) came to hold that assessee was covered by item (x) of Schedule XII and was eligible for deduction under section 80HHC of Income-tax Act. As against said order of Tribunal, Revenue is before this court. Learned standing counsel appearing for Revenue submitted that item (i) of Twelfth Schedule directly deals with quartz and feldspar and, therefore, item (x) of Twelfth Schedule could not be applied. He further submitted that when Twelfth Schedule specifically provides that feldspar should be pulverised and micronised, assessee is not entitled to benefit of section 80HHC since assessee only washes, chippers and washes stone manually, which did not involve any processing. Hence, Assessing Officer is correct in denying benefit under section 80HHC of Income-tax Act. Per contra, learned counsel appearing for assessee submitted that as per item (x) of Twelfth Schedule, which mentions cut and polished minerals and rocks including cut and polished granite are qualified for benefit under section 80HHC. Quartz and feldspar, which are minerals and cut from quarries and polished also qualify for deduction under section 80HHC. As per clause (d) of Explanation to Twelfth Schedule, "process" means cut and polishing. Hence, Tribunal is correct in granting benefit to assessee. Heard learned standing counsel appearing for Revenue and learned counsel appearing for assessee and perused materials placed before this court. core issue now arise for consideration in these appeals is in relation to section 80HHC(2)(b)(ii) of Income-tax Act, in effect, "other than processed minerals and ores specified under Twelfth Schedule". In order to clarify this issue, we extract herein Twelfth Schedule in relation to processed minerals and ores and Explanation: Twelfth Schedule [See section 80HHC(2)(b)(ii)] Processed minerals and ores Processed minerals and ores (i) Pulverised or micronised-barytes, calcite, steatite, pyrophylite, wollastonite, zircon, bentonite, red or yellow oxide, red or yellow ochre, talc, quartz, feldspar, silica powder, garnet, silliminite, fireclay, ballclay, manganese dioxide ore. (ii) Processed or activated-bentonite, diatomious earth, fullers earth. (iii) Processed-kaoline (china clay), whiting, calcium carbonate. (iv) Beneficated-chromite, flourspar, graphite, vermiculite, ilmenite, brown ilmenite (lencoxene) rutile, monazite and other mineral concentrates. (v) Mica blocks, mica splittings, mica condenser films, mica powder, micanite, silvered mica, punched mica, mica paper, mica tapes, mica flakes. (vi) Exfoliated-vermiculite, calcined kyanite, magnesite, calcined magnesite, calcined alumina. (vii) Sized iron ore processed by mechanical screening or crushing and screening through dry process or mechanical crushing, screening, washing and classification through wet process. (viii) Iron ore concentrates processed through crushing, grinding or magnetic separation. (ix) Agglomerated iron ore. (x) Cut and polished minerals and rocks including cut and polished granite. Explanation.-For purposes of this Schedule, "processed", in relation to any mineral or ore, means- (a) dressing through mechanical means to obtain concentrates after removal of gangue and unwanted deleterious substances or through other means without altering minerological identity; (b) pulverisation, calcination or micronisation; (c) agglomeration from fines; (d) cutting and polishing; (e) washing and levigation; (f) benefication by mechanical crushing and screening through dry process; (g) sizing by crushing, screening, washing and classification through wet process; (h) other upgrading techniques such as removal of impurities through chemical treatment, refining by gravity separation, bleaching, flotation or filtration. It is not in dispute that feldspar is mineral. question is whether feldspar would be processed mineral, only if it is pulverised and micronised. If answer to this is not in affirmative, then assessee's case can be accepted. If Department's contention that feldspar, if pulverised and micronised alone are entitled to benefit of deduction under section 80HHC, is accepted, then Department has ground to pursue these appeals. Section 80HHC(2)(b)(ii) of Income-tax Act excludes minerals and ores other than processed minerals and ores specified in Twelfth Schedule. In Twelfth Schedule, processed minerals and ores, items (i) to (ix) are specific in so far as different varieties of minerals and ores are concerned. However, in general terms, item (x) provides cut and polished minerals also subject to processing as defined under Explanation, are eligible for deduction. In present case, feldspar is not in pulverised and micronised form but is exported as cut and polished mineral. This fact is not in dispute. main point is whether feldspar while cutting and polishing undergoes any one of processes as defined under Explanation to Twelfth Schedule. In assessment order, Assessing Officer has accepted process as defined in Explanation to Twelfth Schedule. We find that feldspar, as mineral, could be exported either in cut and polished form or in pulverised and micronised form. It is not correct to say that cut and polished feldspar is not mineral. pulverised and micronised is one among various processes mineral. pulverised and micronised is one among various processes provided for different types of minerals. In same manner, cut and polished minerals, undergoing various processes as per Explanation to Twelfth Schedule, is processed mineral. Commissioner of Income-tax (Appeals) is correct in holding that if any one of processes specified in Twelfth Schedule is satisfied, then benefit would be automatic. In our considered opinion, restrictive meaning given by Assessing Officer does not appear to be correct. assessing authority misconstrued Twelfth Schedule and Explanation to deny benefit of deduction under section 80HHC only on wrong premise that feldspar should be exported only in pulverised and micronised form. If such view is taken, item (x) of Twelfth Schedule will become redundant and meaningless. decision of Supreme Court in case of Gem Granites v. CIT reported in [2004] 271 ITR 322 (SC) relied on by learned standing counsel appearing for Revenue does not get attracted to facts of present case, as said case deals with issue pertaining to assessment year 1987-88, which is prior to amendment in 1991. present cases are after amendment in year 1991, wherein in sub-section (2)(b)(ii) of section 80HHC of Income-tax Act words "other than processed minerals and ores specified in Twelfth Schedule" are inserted. But prior to amendment in year 1991, there are no words of restriction "other than". We, therefore, have no hesitation to hold that order of Commissioner of Income-tax (Appeals), confirmed by Tribunal is correct. Accordingly, substantial questions of law are answered in favour of assessee and against Revenue. In result, all above tax case (appeals) are dismissed. No costs. *** Commissioner of Income-tax v. Kalpana Agencie