2012 (9) TMI 480 - SCH - Income Tax

Texturing and twisting of polyester yarn - Denail of deduction u/s 80IA - Held that - As decided in C.I.T. Mumbai Versus M/s. Emptee Poly-Yarn Pvt. Ltd. 2010 (1) TMI 18 - SUPREME COURT OF INDIA if an operation/process renders a commodity or article fit for use for which it is otherwise not fit the operation/process falls within the meaning of the word manufacture - polyester yarn is a semi-finished product it is a raw material/input. That raw material or input gets converted into a texturised yarn by reason of the thermo mechanical process held as amount to manufacture - in favour of assessee.

Summary

The Supreme Court dismissed civil appeals filed by the Department concerning Assessment Years 1998-1999 and 2001-2002. The question of whether texturing and twisting of polyester yarn amount to 'manufacture' for the purpose of deduction under Section 80IA of the Income Tax Act was answered in a previous case. The appeals were dismissed with no order as to costs.