Section 80-IB deduction for marble slab production allowed after applying manufacturing principle from Arihant Tiles case.

Deduction under Section 80-IB for production of marble slabs was allowed because the activity was treated as manufacturing. The Court applied the Supreme Court ruling in Arihant Tiles & Marbles P. Ltd. as governing authority on the issue and held that the assessee's claim fell within the deduction provision. The question was answered against the Revenue and in favour of the assessee, with the deduction sustained on that basis.

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Issues: Whether the assessee was entitled to deduction under Section 80-IB of the Income-tax Act, 1961 on production of marble slabs, and whether that activity constituted manufacturing.

Analysis: The Court applied the principle laid down by the Supreme Court in Arihant Tiles & Marbles P. Ltd. to the facts of the case and treated that decision as governing the issue raised in the appeal.

Conclusion: The issue was answered against the Revenue and in favour of the assessee, and the claim to deduction stood allowed on that basis.

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