ITO, WD-8(3), KOLKATA, KOLKATA vs. M/S RAJRANI EXPORTS PVT. LTD., KOLKATA

The assessee in the present case is a Company, which is engaged in the business of processing, trading and import of tea and rice. The return of income for the year under consideration was filed by it on 29.10.2001 declaring total income of Rs.1,440/- after claiming exemption under section 10B amounting to Rs.2,65,02,939/- in respect of profits from tea business. In the assessment completed under section 143(3) read with ./2015 Assessment year: 2001-2002 Page 2 of 3 section 147, the claim of the assessee for exemption under section 10B was disallowed by the Assessing Officer on the ground that it was neither manufacturer of tea nor engaged in the production of tea. On appeal, the claim of the assessee for exemption under section 10B was allowed by the ld. CIT(Appeals) by following the decision dated 20.07.2012 of the Special Bench of this Tribunal in assessee’s own case in for A.Y. 2003-04, wherein the similar claim of the assessee for exemption under section 10B was allowed by the Tribunal. Aggrieved by the order of the ld. CIT(Appeals), the Revenue has preferred this appeal before the Tribunal.

At the time of hearing before me, the ld. representatives of both the sides have agreed that the issue involved in this appeal of the Revenue is squarely covered in favour of the assessee and against the Revenue by the decision of the Special Bench of ITAT rendered in assessee’s own case for A.Y. 2003-04 vide its order dated 20.07.2012 passed in wherein it was held that the assessee, who is in the business of blending and processing of tea and export thereof, can be said to be manufacturer/producer of tea for the purpose of section 10A/10B of the Income Tax Act, 1961. Respectfully following the said decision of the Special Bench of this Tribunal in assessee’s own case for A.Y. 2003-04, we uphold the impugned order of the ld. CIT(Appeals) allowing the claim of the assessee for exemption under section 10B and dismiss this appeal of the Revenue.