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2014 (1) TMI 1037 - AT - Income TaxWhether income earned on mixing of rubber compound is eligible for deduction u/s. 80IB, being intermediate product - Exemption in relation of Job work charges - Held that:- Section 80IB is worded in the same way as section 32A - Decision in Midas Polymer Compounds P. Ltd. Versus Assistant Commissioner of Income-tax [2010 (12) TMI 414 - Kerala High Court] followed - 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 taken in all the by-products, intermediate products and residual products which emerge in the course of manufacture of goods - Even production of intermediary products is sufficient to entitle the assessee for deduction available to new industrial unit - Compound rubber produced by the assessee on job work for the tyre manufacturing companies is an intermediary from which tyre is manufactured - There is nothing in the section to indicate that article or thing produced or manufactured should be final product in itself. So much so, the activity of the assessee in their new industrial unit, which is mixing rubber with chemicals, process oil etc., making compound rubber, is covered by section 80IB of the Act - Decided against the revenue.
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