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2015 (5) TMI 789 - HC - Income TaxDeduction under Section 33AB - income from tea purchased by the appellant and blended with the tea, manufactured by it - whether AO's order applying claim as erroneous and prejudicial to the interest of Revenue - revision u/s 263 - Held that:- As decided in Goodricke Group Ltd. v. Commissioner of Income-tax (No.1) reported in [2011 (4) TMI 863 - CALCUTTA HIGH COURT] the assessee has utilized his entire tea grown by it in its garden and by blending the same with some other amount of tea purchased from outside has manufactured the final product and, thus, the entire profit arising out of such manufacture will get the benefit of section 33AB notwithstanding the fact that for the purpose of blending, some small amount was purchased from outside. It appears that the purchased amount is very trifling in comparison to the amount grown by the assessee and thus, it is not a case where it can be alleged that the purpose of maintenance of the garden by growing insignificant amount of tea in comparison to the final product is only a device to get the benefit of the section. In the case before us, assesse submitted that the quantity purchased from outside is 11%. By using the expression ‘trifling’ what did the Division Bench mean is not very clear to us but 11% is also in a sense nominal compared to balance 89% which was admittedly grown and manufactured by the assessee himself. - Decided in favour of assesse.
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