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TMI Blog1995 (2) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... development rebate at 25 per cent. which was allowed by the Income-tax Officer initially. Subsequently, proceedings under section 154 were initiated on the ground that the assessee was doing oil production work by installing oil expellers and, therefore, in accordance with entry 31 of Schedule V to the Act, the assessee is not entitled for development rebate at 25 per cent. The assessee was given an opportunity to show cause as to why the development rebate should not be withdrawn. The assessee submitted in writing that the product of the assessee is covered by item 31 of Schedule V to the Income-tax Act and it was also stated that the manufacturing of vegetable oil and oil cakes does also involve processing of seeds. The Income-tax Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls in entry 31 of the Fifth Schedule is concerned, it is not supported by anything on record. The entry itself mentions that vegetable oil and oilcakes should be manufactured by the solvent-extraction process. If the said items are manufactured by a process other than the solvent-extraction process, then special development rebate of 25 per cent. is not applicable. In respect of the other entry 28, the Tribunal has not given a definite conclusion that the product falls within that item or not and has proceeded on the assumption that the difference between processed seeds and the product manufactured by the assessee has not been stated. It is necessary to refer to the provisions of section 33 of the Act which provide for development rebate i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n and a mistake has been committed by the Income-tax Officer to give development rebate at the higher rate, the power under section 154 could be exercised. The matter with regard to processed seeds as to whether the product of the petitioner falls under item 28 of Schedule V, was duly considered by the Commissioner of Income-tax (Appeals) as well and it was found that the said item does not fall within the category of processed seeds. Since we have come to the conclusion that the production of items contemplated under section 33 to have special development rebate on the products which are mentioned in the Fifth Schedule and the products manufactured by the assessee cannot be considered to be processed seeds or vegetable oil/oilcakes produ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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