INCOME TAX ACT, 1961

Section 80-IC

Deduction under section 80-IC - Manufacturing activity - Assembling of wooden planks with nail into wooden crates -

Assessee a manufacturer of wooden creates, claimed deduction under section 80-IC. AO denied deduction holding that activities of the assessee were purely assembling of wooden planks with nail into wooden crates and if nails removed it would get its original shape as it was before used.Held: Original products used by the assessee were wooden planks, evafoam, thermocol, adhesive tape/pheumatic, stapler pins, and nails. The final product obtained in the process was is wooden crate which was a distinct and separate article different from all the original articles and recognized as a distinct product by Central Excise and VAT classification. Therefore, activities of assessee fell within the meaning of the word 'manufacture' and denial of deduction under section 80-IC was not justified.

Relied on:Aspinwal & Co. Ltd. v. CIT (2001) 251 ITR 323 (SC) : 2001 TaxPub(DT) 1611 (SC), Orcle Software India Ltd. 2010 (1) SCALE 425 : (2010) 187 taxmann.com 275 : 2010 TaxPub(DT) 1317 (SC) (SC)

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13

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