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2012 (10) TMI 620 - HC - Income TaxChilling of milk by keeping with ice to keep it at low temperature - Whether it involves a manufacturing process ? - disallowance of deduction u/s 80 HHA and 80-I considering assessee not an 'Industrial Undertaking'- ITAT allowed the claim - Held that:- The process undertaken by assessee is not simply chilling of the milk but involves various stages of straining, filtration for improving the appearance of the milk as also for reducing microbial counts and decrease in pathogen and substances which are injurious to health. The process of chilling involves, using surface milk chillers, which improve odour and the taste, free from undesirable flavours. The lowering of temperature prevents undesirable fermentation and provide better palatability to milk. Thus these activities result into restricted microbial growth and inactivation of enzymes. The next process is blending, which results in preservation of vitamins and nutrients with standard uniform contents of fat, which also improves flavour of the milk.All this process result into change in the physical and chemical properties of the milk as dairy milk, which can be consumed directly without any further processing. Thus it cannot be equated with simple processing of raw milk for the purpose of final consumption. The processes of treatment of milk amounts to manufacturing process, which may not change the final product but change its composition for improving its nutritional value, quality and marketability, for consumption. The milk, undergoing these process is commercially a distinct commodity known in the market as dairy milk, as compared to the raw milk purchased directly from the milk man - in favour of assessee.
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