Deduction under s 80-IA

Manufacture — Merely because excisable products are exempt from the payment of excise duty cannot be a ground to hold that the products in question are not manufactured by the assessee, as held by MumHC in CIT v Kirti Stationers (P) Ltd — In favour of: The assessee.

The activity of producing sharpener blades, glue and lead amounts to manufacture and the assessee is entitled to a deduction under s 80-IA of the Income Tax Act.

Decided on: 26 September 2011.