Granite activities qualify as manufacturing for tax benefits under Income-tax Act

The High Court of Karnataka held that activities involving extraction, cutting, and polishing of granite constitute manufacturing or production for investment allowance under section 32A of the Income-tax Act, 1961, following the precedent set in Shankar Construction Co. v. CIT. The court ruled in favor of the taxpayer.

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The High Court of Karnataka ruled that extraction of granite from a quarry, cutting it into various sizes, and polishing it qualifies as manufacturing or production for investment allowance under section 32A of the Income-tax Act, 1961. The decision was based on the principle established in Shankar Construction Co. v. CIT [1991] 189 ITR 463 (Kar). The court's decision was in favor of the taxpayer.

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