M/S. GEM GRANITES vs COMMNR. OF INCOME TAX, TAMIL NADU

The Supreme Court ruled that the appellant, an exporter of granite, is entitled to a deduction under Section 80-HHC of the Income Tax Act, 1961 for profits derived from the export of processed granite. The Court held that processed granite, which has been cut and polished, does not fall under the exclusion of minerals and ores as per the original provisions of Section 80-HHC. The Court emphasized that subsequent amendments and clarifications by the CBDT support the interpretation that processed minerals qualify for deductions, thereby allowing the appellant's claim for the assessment year 1987-1988.