2012 (9) TMI 622 - SCH - Income Tax

Deduction u/s 80I - cutting of jumbo rolls of photographic films into smaller marketable sizes - manufacture - Held that - As decided in M/s India Cine Agencies & Computer graphics Ltd.Versus CIT 2008 (11) TMI 15 - SUPREME COURT by process of manufacture something is produced and brought into existence which is different from that, out of which it is made in the sense that the thing produced is by itself a commercial commodity capable of being sold or supplied - The word production or produce when used in juxtaposition with the word manufacture takes in bringing into existence new goods by a process, which may or may not amount to manufacture. It also takes in all the byproducts, intermediate products and residual products, which emerge in the course of manufacture of goods - in favour of assessee.

Summary

The Supreme Court allowed the civil appeal filed by the assessee for Assessment Year 1988-1989 regarding the claim of benefit under Section 80I of the Income Tax Act. The issue of cutting jumbo rolls of photographic films into smaller sizes constituting 'manufacture' was decided in favor of the assessee based on a previous court decision.