9911796707
TMI Blog1988 (9) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... tax Officer rejected both of them and completed the assessment. This was upheld by the Commissioner (Appeals) in the first appeal. The assessee is renewing its prayer in this second appeal. 3. Shri Venkatesan, the learned counsel for the assessee, stated that the business of the assessee involves the following facts although they are not apparent from the assessment order. The right to tap toddy is auctioned by the State Excise Department. The assessee had been the successful bidder for the talukas mentioned in the earlier paragraph. To tap, the assessee enters into contracts with land owners for tapping toddy from their trees. The toddy tapped is transported and sold in the shops thereafter. There is a time gap between tapping and sellin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gets collected in pot fixed in position. The pot is removed and the toddy collected is sold after an interval of time during which it undergoes fermentation for which no external human activity is necessary. The whole thing is a natural process peculiar to kingdom of plant or vegetation. It is, therefore, incorrect to say that a man produces toddy. Toddy is produced by the tree itself and the external agency is only an attempt at collection. 6. The argument that the assessee takes care of the tree has no relevance. As to what is the precise contract between the owner of the tree and the assessee, the details do not seem to have been placed before the Income-tax Officer. The assessee is not the owner of the tree and he is not the cultivat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stand scrutiny. The CIT(A) has relied upon the reasons given by him in the case of Gowramma Family Trust where a similar question had been considered. It is observed by him the conditions are not fulfilled if examined in the light of the decision of the Orissa High Court in the case of CIT v. N.C. Budharaja Co. [1980] 121 ITR 212. 8. The relief under sec. 80HHA is available if the assessee is a small scale industrial undertaking. Small scale industrial undertaking has been explained in clause (b) of sub-sec. (8). Leaving away the question whether the assessee has fulfilled these conditions or not, the claim can be disposed of on a short ground. According to sec. 80HHA(2), the relief is to be granted to an assessee which manufactures or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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