MRS. DELNA RUSTUM BOYCE, (THROUGH MR. AREEZ P. KHAMBATTA, HER FATHER AND GENERAL POWER OF ATTORNEY HOLDER) Vs. DIRECTOR OF INCOME TAX (INTERNATIONAL TAXATION)

JUDGEMENT

(1.) THE applicant is a non -resident Indian, generally residing in USA. This application has been filed by her father and General Power of Attorney holder residing in Ahmedabad. The applicant is being assessed to income tax in India as NRI by the Income -tax authorities in Ahmedabad. The applicant proposes to set up and promote a unit near Ahmedabad in the name of "Pioneer Fruit International" to produce fruit based drink mixes/concentrates derived from fruit juice through the various processes which are given in the Flow Chart appended to the application. The process involves various steps such as peeling, extraction of fruit oil, fruit pulping, screening, emulsifying, homogenizing, spray drying, addition of preservatives, colour and sweetness and packaging. The learned authorized representative of the applicant stated at the time of hearing that three products will be produced in the proposed plant : (1) fruit juice - either obtained from one or more than variety of fruits (normally packed in pouches for ready consumption) (2) Concentrates of juice which in the ordinary parlance are known as 'fruit syrups' consumed by mixing water, and (3) fruit powder obtained by spray -drying of homogenized juice. It is stated that the final product will be placed in packages compatible with the preservation and marketability of the products. The applicant has furnished a copy of the project report in respect of the proposed unit.

(2.) THE applicant has furnished a note giving the details of production with reference to the Flow Chart. The same is extracted hereunder:

(3.) FRUIT Powder: The fruit concentrate obtained as above is subjected to the process of spray drying which converts it to fruit powder, which is blended with food acid, food colour, flavour, stabilizer, sweeteners and vitamins.