2025 (1) TMI 913 - SCH - Income Tax

Deduction u/s 80IB - claim denied as petitioner/appellant is not engaged in any manufacturing activity and instead, it was only doing trading of mushroom powders in capsules - as decided by HC 2018 (7) TMI 1733 - MADRAS HIGH COURT factual matrix clearly demonstrates that what has been done by the assessee is manufacture. In the assessee s case, the product which emerges after the process of manufacture is commercially a distinct commodity, can be of consumption as such containing a requisite amount of ingredients in the appropriate percentage, preserved in proper form as contained in the licence issued under the authorised enactments as well as the technical logo shared by the foreign company, thus claim allowed Maintainability of appeal before Supreme court on low tax effect - HELD THAT - As tax effect in this case is less than Rs.5 crores. Therefore, in view of Circular dated 17th September, 2024, the Special Leave Petition is not entertained and the same is disposed of. However, question of law, if any, is kept open.

Summary

In the Supreme Court judgment presided over by Justices Abhay S. Oka and Nongmeikapam Kotiswar Singh, the Court addressed a Special Leave Petition. The tax effect in the case was determined to be less than Rs. 5 crores. Consequently, pursuant to the Circular dated 17th September 2024, the Court decided not to entertain the petition, resulting in its disposal. The Court noted that any "question of law, if any, is kept open." Additionally, any pending applications related to the case were also disposed of.