Manufacturing of Route Marker entitled for deduction u/s 80IC as it’s covered in definition of manufacture – HC

High Court held In the case of CIT vs. Ms Megha Dadoo that the product (Route Marker) produced by the assessee was commercially different from its raw material and also a commercially different product known in the market. The assessee was engaged in manufacturing of the said product. Therefore, the assessee was entitled to deduction claimed under Section 80IC of the Income tax act.

Facts of the Case

The ITO during assessment disallowed deduction under Section 80IC, claimed by the assessee. The assessee took the matter before the CIT (A) which affirmed the findings recorded by the ITO. Assessee preferred an appeal before the ITAT, which in turn reversed the findings recorded by the authorities below, holding the assessee to be entitled for deductions under Section 80IC.

The primary issue is as to whether manufacturing of “Route Markers” falls within the definition of “manufacture”, entitling him to the deductions, under Section 80IC of the Income Tax Act.

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