Dehusking of Paddy to obtain Rice is ‘Manufacture’ for sec 80IA/IB deduction

CIT Vs M/s. Muthuramalingam Modern Rice Mill (Madras High Court) Conclusion: Conversion of Paddy into Rice by the process of de-husking would amount to “maufacture” as not only the form underwent a change but also the value addition happened by such process as a different commercial article came into being and therefore, assessee was entitled to deduction under Section 80 IA/IB during the relevant assessment years. Held: Department held that the process of dehusking of Paddy for obtaining Rice did not amount to ‘Manufacture’ and therefore, asseseee was not entitled to t...