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| The Tax Publishers2020 TaxPub(DT) 1112 (Mad-HC) INCOME TAX ACT, 1961
Section 10B
Activity carried out by assessee of manufacturing and export of articles ready to decorate products such as bouquets, etc were eligible for deduction under section 10B, because the same amounted to manufacture as what was purchased as raw material and what was exported as a product for export were totally different items.
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Deduction under section 10B - Allowability - Manufacturing and export of articles ready to decorate products such as bouquets etc. -
Issue arose as to whether assessee was entitled to benefit under section 10B for activity carried out by assessee of manufacturing and export of articles ready to decorate products such as bouquets, and also home and office decorations, garlands, potpourris etc. Held: Issue was already decided against Revenue in case of same assessee in Deco De Trend, 2013 TaxPub(DT) 2745 (Mad-HC)) holding that process which assessee had undertaken satisfied test of manufacture to qualify for relief under section 10B. Apart from cleaning and grading, assessee had taken further processing; and it was held that what was purchased as raw material and what was exported as a product for export were totally different items. The process that assessee had undertaken clearly pointed out irreversible nature of the final end product from a raw material purchased.
Followed:CIT, Kerala v. Tara Agencies (2007) 292 ITR 444 (SC) : 2007 TaxPub(DT) 1353 (SC); Aspinwall & Co. Limited v. CIT (2001) 251 ITR 323 (SC) : 2001 TaxPub(DT) 1611 (SC); CIT v. M/s. Deco De Trend (2013) 37 taxmann.com 33 (Madras) : 2013 TaxPub(DT) 2745 (Mad-HC); The ITO, Ward XIII (2), Chennai v. M/s. Deco De Trend [I.T.A. No. 1043/Mds/2010, dt. 8-9-2010]
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
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