Sunday, February 20, 2011

Profits & gains from industrial undertakings [Section 80-IB] - Acti

Income-tax : Profits & gains from industrial undertakings [Section 80-IB] - Activity of mixing rubber with chemicals, process oil, etc., for making compound rubber by an industrial unit is covered by section 80-IB

l Compound rubber produced by the assessee on job work for the tyre manufacturing companies is an intermediary from which tyre is manufactured; if processing of iron ore which is only raw material for producing iron therefrom, amounts to manufacture or production of any article or thing then there is no reason why compound rubber cannot be treated as an article produced by the assessee though for the tyre manufacturing company under contract meaning thereby that there is nothing in the section 80-IB to indicate that article or thing produced or manufactured should be final product in itself. - [2011] 9 taxmann.com 264 (Ker.)

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