Process of obtaining rice from paddy is a manufacturing activity and assessee is eligible for claim of additional depreciation:

Assessee, engaged in the business of running rice mill, claimed additional depreciation on plant and machinery which came to be disallowed by AO since he was of the view that the assessee was not engaged in the manufacture/production of any article. Hon’ble ITAT held that the assessee rice is manufactured/produced after a cumbersome process applied on paddy and the commodity so manufactured cannot be regarded or used as the original commodity. Rather, rice is a distinct commodity than the raw material used (i.e. paddy) either considering the usage or marketability of the product. Hence, the assessee was rightly eligible for additional depreciation.

[M/S. VIJAYALAXMI RICE MILL Vs. ITO – ITA 2205/Ahd/2010]