Section 33B of the Income Tax Act
The decision most relied on for Section 33B is General Motors India (P.) Ltd. v. Dy. CIT (25 Taxmann.com 364), cited in 46 of the 30 judgments on BharatTax that turn on this section.
Leading authorities on Section 33B
Section 44AB (tax audit) does not apply where the assessee is not engaged in a business or profession and consequently has no income under the head 'profits and gains from business or profession'.
The mixing of different brands of tea without the application of any mechanical or chemical process does not constitute 'manufacture' or 'processing'. This precedent was later distinguished by the Supreme Court in Chowgule & Co. Pvt. Ltd. v. Union of India, which held that blending of ore did amount to processing.
Roasting and grinding chicory roots into chicory powder does not constitute manufacturing activity, as it fails to satisfy the test for production of a new article laid down in Aspinwall & Co. Ltd.'s case.
