(1.) This appeal is directed against the judgment dated 18th January, 2000 passed in ITR No. 10 of 1996 by the High Court of Kerala at Ernakulam.
(2.) The short question which arises for adjudication by this court is whether the Respondent assessee who is engaged in pur chase of different qualities of tea and blend ing the same for the purpose of export is entitled to weighted deduction under sec tion 35B (1A) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") in re spect of expenditure incurred for its export for the assessment year 1979-80.
(3.) Brief facts which are necessary to dis pose of this appeal are as under : The assessee is a registered firm engaged in the business of export of tea. The Respondent assessee purchases tea of diverse grades and brands and blends the same by mixing different kinds of tea. In this appeal, we are called upon to examine whether the business activity of the respondent asses see falls within the ambit of production, manufacturing or processing The Respondent assessee would be entitled to weighted deduction under section 35B(1A) of the Act in case the goods exported were manufac tured or produced in small scale industrial undertaking but, in case it falls short of pro duction or manufacture, then the Respondent would not be entitled to the benefit under section 35B(1A) of the Act. The said benefit, according to the relevant statute, is restricted to only goods produced or manufactured in the small scale industrial un dertaking for export. The benefit cannot be extended in case the goods are merely pro cessed by the small scale industrial under taking. In order to derive benefit under sec tion 35B (1A) the goods have to be either manufactured or produced by the small scale industrial undertaking.
ABOUT US "REGENT COMPUTRONICS PVT. LTD." is a Company incorporated in 1991 under the provisions of the Companies Act, 1956. Since its inception to 1995, the Company was busy in carrying out the activities related to various Banks' Job Work..
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