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2011 (5) TMI 827 - HC - Income TaxDeduction u/s 80HHC(3)(a) - assessee is a plantation company, engaged in purchase and export of cardamom - Revenue contended that cleaning and grading done by the assessee did not involve any "processing" within the meaning of clause (a) of section 80HHC(3) as there is no change, physical or otherwise - Held that:- The assessee has no case that the assessee either changed the physical form or made any change whatsoever to the cardamom purchased before export, and what was done by the assessee is that it just washed the cardamom to remove the extraneous matters and particles, if any, on the surface of the cardamom, and exported the same. Since the commodity purchased was exported in the same form, the transaction falls under trading of goods falling under clause (f) read with clause (b) and not under clause (a). What is required to be considered is not whether the assessee has done any processing of purchased goods before export, but the processing of the goods resulted any change to the original form of the goods to treat it as a processed goods, export of which alone will entitle the assessee for deduction of profit under clause (a) above referred. Since the washing, drying and grading of dried cardamom purchased by the assessee before export do not make the cardamom exported as processed cardamom within the meaning of clause (a) above stated, the assessee is not entitled to deduction - Decided against the assessee
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