The appeal addressed the scope of the terms "manufacture" and ...

Court ruled converting blocks to slabs is "manufacture" under tax law. Impact on tax liabilities crucial. Upheld High Court decision.

Case Laws     Income Tax

August 13, 2024

The appeal addressed the scope of the terms "manufacture" and "production" u/s 80IA of the Income-tax Act. The court held that the conversion of blocks into polished slabs and tiles constituted manufacture, creating a new distinct commodity. This activity went beyond mere manufacturing, resulting in the emergence of a new product. Denying such activity as manufacturing u/s 80-IA would have dire consequences for the assessees, impacting their tax liabilities. The High Court's decision in favor of the respondents was upheld, granting them the benefit of section 80-IA.

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