Case Law Details
Brief of the case:
Madras High Court held in CIT Vs Funskool (I) Ltd (Madras High Court) that for calculating the cost of the finished product the process of designing or stickering which had been used to design or give a final look to the finished product which was finally sold in the market should also be included in the total cost of final product not under the advertisement cost.
Facts of the case:
Assessee used to manufacture the toys and used to put sticker of “MRF“ on the toys due to which the value of toys got enhanced. Moreover the stickering process involves machines and man power. This all was the manufacturing process of the assessee which includes the stickering process because of which the assessee considered the same to be included in its turnover for calculating the deduction u/s 80HHC.But the revenue was of the view that the above stickering income was not to be included in the turnover but the same should be included in the advertisement charges.
Contention of the assessee:
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