2015 (8) TMI 176

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..... 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 our opinion, a purposive interpretation of the aforesaid provision should be made instead of literal construction of the same otherwise, the legislative purpos .....

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..... issioner of Income-Tax(No.1), reported in [2011] 338 ITR 97 [Cal], wherein the following view was taken : The requirement of section 33AB is that the assessee must grow tea leaves and will also convert those leaves into final product by way of processing. Therefore, the moment the substantial amount of tea, thus, manufactured in the form of final product is grown in the garden of the assessee and such amount of grown tea is converted into the final form by blending with insignificant amount of other tea purchased from outside, such purchased tea from outside for the purpose of blending forms part of the process of manufacture of the final product of tea grown and maunfactured by the assessee and, thus, the requirement of the section .....

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..... me 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 our opinion, a purposive interpretation of the aforesaid provision should be made instead of literal construction of the same .....

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