Ginning and pressing of cotton amounts to manufacturing activity:

AO denied assessee’s claim u/s 80IB on the ground that assessee was not engaged in the manufacturing activity. Both the lower authorities allowed the assessee’s claim. On Revenue’s appeal, the Hon’ble High Courtheld that the ginning and pressing of cotton amounts to manufacturing activity and hence assessee was eligible for deduction u/s 80IB. Accordingly, the Revenue’s appeal was dismissed.

[JAYDEEP COTTON FIBRES PVT. LTD. - TAX APPEAL NO.1062 of 2011 - GHC]