Worker threshold for manufacturing deduction: casual and temporary workers count, and substantial compliance can satisfy the statutory minimum.

For deduction under section 80-IA(2)(v), the worker threshold was interpreted broadly: activities integrally connected with manufacturing formed part of the manufacturing process, and casual, temporary or contract workers were counted where they were engaged in that process. The term "worker" was read in its ordinary sense and by reference to the Factories Act, so permanency, provident fund deductions or insurance coverage were not decisive. The ten-worker requirement was capable of substantial compliance during the relevant working period rather than strict day-to-day compliance throughout the year. On the stated facts, the undertaking satisfied the statutory condition and the deduction threshold was met.

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Issues: Whether, for the purpose of deduction under section 80-IA(2)(v), workers engaged on a casual or temporary basis and persons engaged in activities incidental or connected with manufacturing are to be counted, and whether the statutory requirement of employing ten or more workers is satisfied by substantial compliance during the relevant working period.

Analysis: The provision requires the industrial undertaking to employ ten or more workers in a manufacturing process carried on with the aid of power. The expression "manufacturing process" was read broadly to include activities integrally connected with production, not merely the core act of manufacture. The expression "worker" was also construed in its ordinary sense and in light of section 2(l) of the Factories Act, so that casual, temporary and contract workers were not excluded merely because they were not permanent employees or because no provident fund or insurance deductions were made. The requirement was held to be capable of substantial compliance, and not strict day-to-day compliance throughout the entire year. On the facts, the records showed that the undertaking had ten or more workers for a substantial part of the working period, and the departmental allowance of the claim in earlier and later years supported the conclusion.

Conclusion: The statutory condition under section 80-IA(2)(v) was satisfied on a substantial-compliance basis, and casual workers were countable for the purpose of the threshold.

Ratio Decidendi: For deduction provisions requiring employment of a minimum number of workers, the threshold may be satisfied by substantial compliance during the relevant working period, and casual or temporary workers engaged in the manufacturing process are to be counted unless the statute expressly excludes them.

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