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TMI Blog2012 (5) TMI 276X X X X Extracts X X X X X X X X Extracts X X X X ..... l income tax - held that:- eligible relief can be considered only in the writ petition pending and not in these statutory appeals filed by the appellant under Section 260A of the Income Tax Act wherein we have considered the substantial question of law arising from the orders of the Tribunal. - IT Appeal Nos. 382, 383, 393 to 396, 398, 402, 403, 406 & 407 of 2010 - - - Dated:- 1-12-2011 - C.N. Ramachandran Nair and K. Vinod Chandran, JJ. E.K. Nandakumar, A.K. Jayasankar Nambiar, K. John Mathai, P. Benny Thomas, P. Gopinath and Smt. Preetha S. Nair for the Appellant. P.K.R. Menon and Jose Joseph for the Respondent. JUDGMENT C.N. Ramachandran Nair, J. In the 11 appeals filed by the assessee, the question raised is whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 43 B in respect of Agricultural Income Tax paid. It is against these orders of the Tribunal, the assessee has filed appeals against the assessments confirmed for the assessment years 1997-98 to 2006-07. During hearing of these appeals, the Senior Counsel appearing for the assessee brought to our notice the pendency of W.P.(C) No. 36862/2004 before this Court, which is basically against the income-tax assessments which are now impugned in the instant appeals. For the disposal of the writ petition, it is necessary that the agricultural income tax authorities under the State are also heard. At the request of the counsel for the assessee, we have ordered posting of that case before the Division Bench because the writ petition has to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e outside fruit pericarp outside and the kernel inside is an agricultural activity and the respondent also have no dispute on that. However, dispute starts with regard to the subsequent process, that is industrial activity, wherein the appellant engages a series of process of curing and extracting oil from the pericarp(pulp) and also from the kernel in the factory. The process involved is extracted in the impugned orders particularly by the first appellate authority wherein the process is stated briefly as follows: Details of processing: Fresh fruit bunches received in the factory is sterilized by steaming in a large autoclave for a period of 50 minutes. After that the fruits are stripped by using a bunch stripper. After stripping the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is the sole company in the State engaged in extraction of palm oil from palm kernels and the pericarp (fruit). In fact, the small growers supply the fruit to the appellant/assessee, which alone has the processing facility for extraction of oil. In our view, the processing covered by sub-clause (ii) of Section 2 (1A)(b) is only so much of the process which a cultivator ordinarily engages to make the product fit for marketing. Normally the process engaged by cultivators are curing, drying, garbling, etc. and not any industrial activity which is possible only in a factory. So much so, going by the complicated process involved in extraction of crude palm oil from pericarp and kernel, we conclude that so much of the activity carried out by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the value calculated according to the average price at which it has been so sold during the relevant previous year; ( b ) where agricultural produce is not ordinarily sold in the market in its raw state or after application to it of any process aforesaid, the aggregate of - ( i ) the expenses of cultivation; ( ii ) the land revenue or rent paid for the area in which it was grown; and ( iii ) such amount as the Assessing Officer finds, having regard to all the circumstances in each case, to represent a reasonable profit." 5. So much so, so much of the income attributable to agricultural operations, as per sub-rule (2) above stated, that is the market value of the agricultural produce; which in this case is the fruit with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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