Commissioner Of Income Tax vs Sesa Goa Ltd.

The Supreme Court upheld the Bombay High Court's ruling that the extraction and processing of iron ore constitutes 'production' under Section 32A(2)(b)(iii) of the Income Tax Act, 1961, entitling the assessee to investment allowance. The Court clarified that while the activity does not amount to 'manufacture', it falls within the definition of 'production' as intended by Parliament. The appeal by the Revenue was dismissed, affirming the High Court's interpretation of the relevant provisions and precedents.