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2013 (12) TMI 251 - HC - Income TaxBottling of gas into gas cylinders - Production activity for section 80IB - Held that:- Following Commissioner of Income Tax-I vs. M/s.Hindustan Petroleum Corporation Ltd. [2013 (5) TMI 124 - BOMBAY HIGH COURT] and Supreme Court in Commissioner of Income Tax vs. Vinbros & Company [2012 (9) TMI 802 - SUPREME COURT] - Every activity which bring into existence a new product would constitute production - The process of bottling the LPG Gas into cylinder makes the same marketable on execution of the process - Neither loose gas nor an empty cylinders can be sold to customers and it is only “gas cylinder” containing gas is a marketable product which the assessee produces - When the assessee produces the gas cylinder containing gas, in our opinion, a new product comes into existence - The process of bottling of gas into gas cylinders, which requires a very specialized process and an independent plant and machinery, amount to production of ‘gas cylinders’ containing gas for the purpose of claiming deduction under Section 80IB of the Act - Decided in favour of assessee.
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