Manufacture or Produce - Definition / Legal Terminology - Income Tax

As per clause (29BA) of section 2 of the Income-tax Act, 1961 Manufacture , with its grammatical variations, means a change in a non-living physical object or article or thing, - (a) resulting in transformation of the object or article or thing into anew and distinct object or article or thing having a different name, character and use; or (b) bringing into existence of a new and distinct object or article or thing with a different chemical composition or integral structure; Explanation 4 - For the purposes of section 10A of the Income tax Act 1961 , Manufacture Or Produce shall include - the cutting and polishing of precious and semi-precious stones .