2001 (2) TMI 16 - SC - Income Tax

Deduction Appeal Denied: Poultry Dressing Not Manufacturing

The Supreme Court dismissed the appeal on deductions under sections 80-I, 80HH, and 80-I of the Income-tax Act, 1961 for a non-industrial undertaking. The ... Case of assessee was that it not only reared the chicken but also dressed them for sale in the market and, therefore, a process of manufacture was carried out - that there was no material laid before the Tribunal in this behalf. It is, therefore, not possible to conclude in the present matter that the dressing of poultry is tantamount to manufacture - Tribunal was right in law in holding that the assessee, being not an industrial undertaking, it is not entitled to deduction under section 80-I The Supreme Court dismissed the appeal regarding the deduction under sections 80-I, 80HH, and 80-I of the Income-tax Act, 1961 for an assessee not considered an industrial undertaking. The court ruled that dressing poultry does not constitute manufacturing without sufficient evidence. The decision was based on a previous judgment against the assessee.