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'Bottling LPG for domestic purpose liable for tax benefits'

The Supreme Court on Thursday held that the process of bottling of LPG cylinders meant for domestic use is an activity which amounts to 'production' and 'manufacturing' and is liable for income tax deductions.
The apex court also accepted the views expressed by various high courts from time to time that bottling of gas into cylinder amounts to production and liable for a claim of deduction under Sections 80HH, 80-I and 80-IA of Income Tax Act.
A bench of justices A K Sikri and Ashok Bhushan dismissed a batch of appeals filed by Commissioner of Income Tax against the order of the high court and the Income Tax Appellate Tribunal (ITAT), which has allowed the tax benefit to parties engaged in the bottling of Liquefied Petroleum Gas (LPG) for domestic use.
The ITAT order, which was also affirmed by the high courts, has held that LPG produced in the refineries cannot be directly supplied to households without bottling of the LPG into the cylinders and insofar as LPG bottling is concerned, it is a complex activity, which can only be carried out by experts.
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