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TMI Blog2022 (2) TMI 1209X X X X Extracts X X X X X X X X Extracts X X X X ..... e, 2017 passed by the Income Tax Appellate Tribunal, Kolkata "C" Bench (the 'Tribunal' in short) in IT(SS)A Nos.13 to 18/Kol/2016 for the assessment years 2008-09 to 2013-14. The appeal has been filed by the revenue raising the following substantial questions of law for consideration: "(1) Whether in the facts and circumstances of the case, the learned Tribunal was justified in law and on facts in upholding the assessee's appeal in which the assessee had challenged the assumption of jurisdiction by the assessing officer to make the assessment under Section 153A/143(3) of the Income Tax Act, 1961 on the ground that no incriminating documents was found and/or seized during search? (2) Whether in the facts and circumstances of the case, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are hit by the circular issued by the Central Board of Direct Taxes (CBDT) and the appeals cannot be pursued by the revenue on the ground of low tax effect. For such reason, appeals filed by the revenue for the aforementioned three years are dismissed. Substantial question of law no.1 arises for consideration for the assessment year 2011-12 and substantial questions of law nos.2 and 3 arise for the assessment years 2011-12, 2012-13 and 2013-14. So far as the substantial question of law no.1 is concerned, as to whether the assumption of jurisdiction by the assessing officer under Section 153A/143(3) of the Act was valid or not, is an issue which can be decided if necessary after taking a decision on the other questions which arise in the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re mixed and the assessee has a one tonne per hour boiler which generates steam at 10 kgs/cm2 pressure and they also have insulated pipeline which carries the steam to the pellet section. The pressure reducing valve (PRV) is fitted before the pellet section which is reducing the pressure from 10 kgs to 1.5 kg/cm2 which will ensure that the steam entering the conditioning section is released slowly into the material for good conditioning. Thereafter, there are two other conditioning processes in which the poultry feed comes into contact with steam which is stated to ensure that the starch contained in the feed is gelatinised which is better for the growth of the chicken and at that level the feed attains a temperature of 850C thereby all the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... note of various other decisions as also that the Central Government has notified the poultry feed industry under Section 80IB(4) and other observations, the appeal filed by the revenue was dismissed. The learned counsel for the appellant/revenue submits that the process undertaken by the assessee is only mixing and, therefore, the assessing officer was right in denying the relief. In support of her contentions, the learned counsel referred to the decision of this Court in the case of PCIT, Kolkata Vs. V.N. Enterprises Limited in ITAT No.129/2016 dated 30.9.2021. This decision is pressed into service to buttress her submission that when there is ambiguity in an exemption provision, the benefit has to go to the revenue. Further, the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot be consumed by human beings. Therefore, the individual ingredients loose them its identity and get merged with the final product which is a separate product having its own identity and characteristics. Therefore, we are of the view that the CIT(A) and the tribunal were right in holding that the process undertaken by the assessee amounts to manufacture. So far as the decision in the case of V.N. Enterprises Limited is concerned, the question which was framed in the said appeal was whether the assessee therein will be entitled to exemption under Section 10B of the Act for business of blending of tea. The learned senior counsel for the respondent/assessee submits that in the said case a review application has been filed by the assessee ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to cases where similar activities were carried on. In fact, in the case of Tara Agencies the process was blending of tea and obviously the process which was mentioned therein was different and distinguishable as that of the process of making poultry feed. Therefore, we would be well-justified in following the decision in Sona Vets Pvt. Ltd. which had considered the same product as that of the product produced by the assessee. Therefore, we hold that the tribunal was right in confirming the order of the CIT(A) and granting relief under Section 80IB of the Act. In the result, the substantial questions of law framed on this issue are decided against the revenue. The next substantial question of law is with regard to the disallowance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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