The High Court held that filling mushroom powder into gelatin capsules after undergoing a specified process results in a new commercially distinct product, qualifying for deduction under s. 80-IB. Revenue’s SLP was dismissed as the tax effect was less than ₹5 crores in view of CBDT Circular No. 9/2024 dated 17-9-2024. The decision affirms that value addition resulting in a new product meets the “manufacture” test under s. 80-IB. (AYs 2003-04, 2004-05)
ITO v. DXN Herbal Manufacturing (India) (P.) Ltd. (2025) 303 Taxman 407 (SC) Editorial : DXN Herbal Manufacturing (India) (P.) Ltd v. ITO (2018) 257 Taxman 492 (Mad)(HC)
S. 80IB : Industrial undertakings-Manufacture-Filling of ushroom powder in gelatin capsules after following specified process amounts to manufacture or production of commercially distinct commodity-Eligible for deduction-SLP dismissed due to low tax effect [S. 268A, Art. 136]
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