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TMI Blog1992 (10) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... tion under section 80HH? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in holding that processing of raw beef and packing for export constitute manufacture or production of an article or thing for the purpose of section 80HH ?" The relevant facts are that the assessee deals in marine products for the purpose of exports. It processes marine products, freezes them and thereafter packs the same as per export specifications. The assessee also buys meat in the market and subjects the same to several processes such as cleaning, removing bones and fat through chemical and scientific methods, bifurcating chunks, trimming and finally packing the same in a fit condition for the export market ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , there was no consumption of the original pineapple fruit for the purpose of manufacture. The above decision is mainly concerned with the concept of consumption under the provisions of the Kerala General Sales Tax Act. Here we are concerned with the provisions of section 80HH of the Income-tax Act. The question is whether the assessee is an industrial undertaking and employs 10 or more workers in a manufacturing process carried on with the aid of power, etc. This section came up for consideration before the Kerala High Court in almost similar circumstances in CIT v. Marwell Sea Foods [1987] 166 ITR 624. Having regard to the purpose behind the provision, the relevant terms were construed by the High Court so that its beneficial provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he new industry for the ultimate development of backward areas. In CIT v. Relish Foods [1989] 180 ITR 454, once again the Kerala High Court had occasion to consider the scope of section 80HH. It was held that the purchasing, peeling, freezing and export of shrimps amounted to production and, hence the assessee was entitled to the deduction under section 80HH. In Shankar Construction Co. v. CIT [1991] 189 ITR 463, Bench of this court construed the term " industrial undertaking " liberally. That was a case arising out of a claim for investment allowance claimed by the assessee which was engaged in the construction of dams and channels. In Chowgule and Co. Pvt. Ltd. v. Union of India [1981] 47 STC 124 (SC), the assessee was carrying on a b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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