TMI Blog2013 (11) TMI 837X X X X Extracts X X X X X X X X Extracts X X X X ..... of claiming exemption u/s. 10B. - Decided in favor of assessee. - ITA No.698/Kol/2009 - - - Dated:- 13-11-2013 - Sri R. S. Syal, AM And Sri George Mathan, JM,JJ. For the Appellant: Shri N.Jain, CA For the Respondent: Shri A.K.Singh, CIT(DR) ORDER Per Shri George Mathan, JM This is an appeal filed by the assessee against the order of ld. C.I.T, Kolkata-II passed u/s 263 of the IT Act in M. No.CIT.Kol-II/U/s 263/C-13/08-09/6093-95 dated 13.03.2009 for Assessment year 2004-05. 2. Shri N.Jain, CA appeared on behalf of the assessee and Shri A.K.Singh, CIT(DR) appeared on behalf of the Revenue. 3. At the time of hearing it was submitted by the ld. AR that the issue in this appeal was squarely covered by the decision of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... blending of tea with other substances the dominant component of the end product is tea and for a common consumer the product is sold marketed as blended or scented or flavoured Tea. In my opinion therefore, the final product is known to the trade commerce and cross sections of the consumers as tea not as a different or distinct product because of the additives used in blending. 7. In the appellate proceedings the A/R for the appellant could not bring before me any evidence which could persuade me to take a .view contrary to the decision of the Supreme Court in the case of CIT vs Tara Agencies (Supra). No material was brought on record to demonstrate that the activities carried on by the appellant amounted to manufacture or productio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of an article" has been interpreted by the Supreme Court for the purpose of granting beneficial deductions under the Income-tax Act in its various decisions. In particular the Supreme Court considered and interpreted the said expression in relation to deduction allowable under the Income-tax Act to an assessee engaged in export of blended tea. On analyzing the facts various stages involved in blending of tea the Supreme Court held that blending of tea did not amount to manufacture or production of new article. In the case decided by the Supreme Court the assessee had blended different varieties of tea. In the present case, however, the assessee blended tea with other produce substances such as orange, jasmine, lemon, strawberry etc and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was the submission that order passed u/s 263 of the Act was liable to be upheld. 5. We have considered the rival submissions. A perusal of order passed u./s 263 of the Act which is the subject matter of the appeal before us clearly shows that the ld. CIT has invoked his powers u/s 263 of the Act only in respect of the issue of benefit of deduction u/s 10B of the Act in respect of blending of different types of tea. It is squarely covered by the decision of the Coordinate Bench of this Tribunal in assessee's own case for the immediately succeeding year. In the circumstances respectfully following the decision of the coordinate Bench of this Tribunal in assessee's own case for the immediately succeeding year order passed u/s 263 of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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