Manufacture of herbal product from herbs, manually and with use of small machinery, eligible for deduction u/s 80IA

CIT Vs M/s. Cavinkare Private Limited (Madras High Court) Conclusion: Deduction u/s 80IA eligible when herbal product is manufactured from herbs, manually and with the use of some chemicals and small machinery. Facts: Assessee is engaged in converting herbs into herbal powder which involves processing of drying of herbs, fumigation, grinding & sieving, blending, quality control and packing. Benefit u/s 80IA was denied to the assessee alleging that they were not engaged in any activity of manufacture or production. Further it was also alleged that the electricity consumption was also lower....