Section 80-IA – Texturing & twisting of polyester yarn amount to manufacture – SC

SUPREME COURT OF INDIA

Commissioner of Income-tax

v/s.

Yashasvi Yarn Ltd.

special leave to appeal (civil) no. 3732 of 2009

S.L.P. (C) No. 9270 of 2009†

civil appeal nos. 6408 & 6412 of 2012

SEPTEMBER 11, 2012

ORDER

1. Heard learned counsel on both sides.

2. Delay condoned.

3. Leave granted.

4. The civil appeals filed by the Department are dismissed with no order as to costs.

ORDER

1. Heard learned counsel on both sides.

2. Delay condoned.

3. Leave granted.

4. These appeals filed by the Department concern Assessment Years 1998-1999 and 2001-2002.

5. A short question which arises for determination in these civil appeals is, whether texturing and twisting of polyester yarn amount to ‘manufacture’ for the purpose of computation of deduction under Section 80IA of the Income Tax Act, 1961. This question has been squarely answered by this Court in the case of CIT v. Emptee Poly-Yarn (P.) Ltd. [2010] 188 Taxman 188.

6. Accordingly, the civil appeals filed by the Department are dismissed with no order as to costs.

NF