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2021 (8) TMI 674 - MADRAS HIGH COURTDeduction u/s 10B - activity of conversion of raw gherkins to bottled pickle - amount to ' manufacture' or not - HELD THAT:- The entire facts reveal that the assessee is running an Agro product unit under the name and style of 'Sterling Agro Products Processing Pvt.Ltd.,' which is very much involved in the production of the pickles from the raw vegetables gherkins and to make a fine pickle vegetable, raw gherkins were processed into various stages like cutting into pails, various process like preculling, washed and loaded in the barrels with preservative chemicals and then cut into pieces, removing the defective fruits and then cut into slices and packed into the bottles as sweet hot pickles. All these processes clearly reveal that the original commodity of vegetable gherkins transform into pickles, had the same identity as the original gherkins and it was not transformed into new commodity. The authorities relied on by the respondent / Department are squarely applicable to the facts of the case and on the other hand, the authorities relied on by the appellant are not supporting his contentions rather it relates to the industrial activities, which is totally different from the facts of the instant case. The questions of law are answered accordingly - assessee is not entitled for the deduction under Section 10B of Income Tax Act and the findings given by the Tribunal that the conversion of raw gherkins to bottle pickle, would not amount to 'manufacture' is sustainable one consequently, they are not entitled for deduction u/s 10B. - Decided against assessee.
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