2000 (12) TMI 7 - SC - Income Tax

New Industrial Undertaking - Whether, on the facts and in the circumstances of the case and in law, the Tribunal was right of confirming the order of the Commissioner of Income-tax (Appeals) holding that the assessee, engaged in cutting and polishing of diamonds, amounts to manufacturing or production of goods and is entitled to deduction under section 80-I - Held, no

Summary

The Supreme Court judgment concerned the deduction under section 80-I of the Income-tax Act for cutting and polishing diamonds. The Court ruled that cutting and polishing diamonds does not amount to manufacturing or production of goods for the purpose of the deduction. The appeal was allowed in favor of the Revenue, and the assessee was directed to pay the costs of the appeal.