9911796707
TMI Blog1993 (5) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... ar of the assessee ended on 31-3-1985. The assessee is a registered firm. It is an exporter in lemon grass oil and dried cocoa seeds. The assessee claimed deduction under section 80HHC on the entire export, turnover. According to the Assessing Officer dried cocoa seeds is an agricultural produce and as such export sale proceeds of the dried cocoa seeds cannot be considered for the purpose of worki ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter of the seed has not undergone any change either in its quality or in its nature or form. The so-called process is only done for the purpose of making agricultural produce fit to be taken to the market for sale/export. Since the nature, form and character of the seeds are the same even after the so-called process, they will come under agricultural produce only and as such the claim will be rest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CIT(A). The learned Chartered Accountant brought before us the cocoa fruits, wet seeds and dried seeds. According to him the cocoa fruits are fleshy and the seeds are taken by opening the fruits. The wet seeds are obtained and dried for a week, which cannot be treated as a primary agricultural produce. "Agricultural income" is defined under section 2(1)(b)(ii) as "income from land by the perf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nary, we hold that the dried cocoa seeds are not primary produce. In order to obtain dried cocoa seeds some process needs to be done for a week. Hence we hold that dried cocoa seeds is not a primary agricultural produce in contradistinction to cocoa fruits themselves. Thus the benefit of deduction under section 80HHC in respect of the dried cocoa seeds cannot be denied. Therefore, the appeal of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
