THE COMMISSIONER OF INCOME TAX AND ORS. Vs. KARNATAKA STATE AGRICULTURAL PRODUCE PROCESSING & EXPORT CORPORATION LTD.

JUDGEMENT

(1.) Revenue has challenged the order dated 20.12.2013 passed by the Income Tax Appellate Tribunal, "B" Bench, Bangalore.

(2.) The only question involved in this appeal is,

(3.) The facts leading to this appeal are that the assessee is a company fully owned by the Government of Karnataka engaged in trading in agricultural produce and is an approved channalising agent for Bangalore in respect of rose, onion and niger seeds. The Government of Karnataka sanctioned Rs.10.00 crores for improvement of infrastructure in order to encourage the farmers for development of horticultural sector and to promote export. The relevant part of the proceedings of the said Government Order dated 23.1.2007 issued by the Government of Karnataka is reproduded below: