Law: Income Tax Act, 1961

Section: 80-J(4)(iii)

Income-tax----Special deduction ---Newely established industrial undertaking--¬ "Manufacture or processing of goods", meaning of ---Assessee buying different types of tea from market, blending them in different proportions and selling the blended tea---Blending amounts to processing but not manufacture or production of an article---Input and output remains tea---No commercially new and distinct commodity brought into existence---Activity of assessee does not constitute manufacture or production of an article or thing ---Assessee not entitled to relief---Indian Income Tax Act, 1961, S.80-J(4)(iii). The words "manufacture" and "production" apply to a case which brings into existence something different from its components. The Legislature has used different expressions, "manufacture", "processing" or "mining" and, therefore, it is apparent that the Legislature is not treating manufacture of goods as the same as processing of goods. "Manufacture" implies a transformation or alteration of goods. "Manufacture" means production of an article for use from raw, semi-¬raw or prepared materials by giving these materials new form, quantities or properties or combination, whether by hand, labour or machinery. The assessee carried on business in buying different types of tea from the market, blending them in different proportions and thereafter sold the tea in the market. The assessee claimed relief under section 80-J(4) of the Income Tax Act, 1961, on the ground that it was engaged in the manufacture or production of an article within the meaning of section 80-J(4)(iii) of the Act. The Income-tax Officer rejected the claim for relief on the ground that the assessee was not an industrial undertaking manufacturing or producing an article as it was engaged only in the blending of different types of tea and selling the tea so blended. The Commissioner (Appeals) allowed the claim of the assessee. The Tribunal held that the assessee was not entitled to any relief under section 80-J as it was not an industrial undertaking which manufactured or produced any article since the assessee was engaged only in blending of tea which might amount to processing but not manufacture or…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492