COMMISSIONER OF INCOME TAX Vs. MARWELL SEA FOODS

JUDGEMENT

(1.) The following three questions have been, at the instance of the revenue, referred to us by the Income Tax Appellate Tribunal, Cochin Bench:

(2.) The assessee's claim for deduction of the purchase tax paid during the relevant year in respect of the prawns said to have been produced and exported by the assessee was disallowed by the Income Tax Officer to the extent of Rs.12,696/-. The claim was, however, allowed by both the appellate authorities as an expenditure allowable under S.37 of the Income Tax Act, 1961 (the "Act"). We see no reason to doubt the correctness of that finding. Question No. (1) is accordingly, answered in the affirmative, that is, in favour of the assessee and against the revenue.

(3.) The assessee claimed that he was entitled to the deduction allowed under S.80HH of the Act. The claim was disallowed by the Income Tax Officer on the ground that the business of the assessee was not one in which either manufacture or production was involved, so as to attract the provisions of that Section. However, the decision of the Income Tax Officer was reversed by the Appellate Assistant Commissioner, and that decision was confirmed in appeal by the Tribunal.