COMMISSIONER OF INCOME TAX Vs. RAVI RATNA EXPORTERS

JUDGEMENT

(1.) BY this reference made under section 256(1) of the Income -tax Act, 1961, at the instance of the Revenue, the following question of law have been referred to us by the Income -tax Appellate Tribunal, Bombay Bench 'A', Bombay ('the Tribunal'), for opinion : 'Whether, on the facts and in the circumstances of the case, the assessee was entitled to relief under section 80J of the Income -tax Act, 1961, in respect of the income derived by it from processing of prawns ?'

(2.) THE assessee is a registered firm deriving income from business of processing of prawns. In the assessment of its income for the assessment year 1980 -81, it claimed relief under section 80J of the Act on the footing that it was engaged in the manufacture or processing of articles. The Income -tax Officer rejected this claim of the assessee on the ground that the expression 'processing' did not find a place in section 80J of the Income -tax Act, 1961 ('the Act'). The assessee appealed to the Commissioner of Income -tax (Appeals). The Commissioner (Appeals) held that processing of prawns amounted to manufacture of articles and hence the assessee was entitled to relief under section 80J of the Act. He, therefore, allowed the appeal of the assessee. Against this order of the Commissioner (Appeals), the Revenue appealed to the Tribunal. The Tribunal affirmed the order of the Commissioner (Appeals) and held that processing of prawns amounted to manufacture of articles. Hence, this reference at the instance of the Revenue.

(3.) IT is evident from these conditions that in order to claim any relief under section 80J, the undertaking concerned must manufacture or produce articles. It is a condition precedent.