TMI Blog1984 (8) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... rders of this court in O.P. Nos. 4404, 4406 and 4444 of 1977, the following question has been referred to us by the Income-tax Appellate Tribunal, Cochin Bench: "Whether, on the facts and in the circumstances of the case, the tea bushes cannot be characterised as 'growing crops' ? The assessee is a partner of a firm owning tea estates. He is assessed as an individual in respect of his one-ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... affirmed the finding of the WTO. Counsel for the assessee points out that the exemption claimed in terms of s. 5(1)(viiia) represented the total value of the leaves and buds plucked during the year from the tea bushes. He says that from each bush only two leaves and one bud are plucked during each season of the year. In respect of the remaining leaves, which, he says, have no value, the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the actual value of the raw materials. From the contentions of the parties, the orders of the WTO and the higher authorities, and the arguments at the bar, we seriously doubt the correctness of this assumption, should that be the assumption on the basis of which the officer restricted the exemption to 20 per cent. If 8,23,051 kgs. for the assessment year 1970-71, represented the total quantity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exempted value of growing crops did not include the value of any leaves other than the leaves and buds which were the raw material and which were plucked in each season during the relevant year at the rate of two leaves and one bud from each bush, there was no justification in law for not allowing the total value as claimed. If that was the position, the denial of exemption to the extent of 80 pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the leaves and buds plucked from each bush during each season of the year as raw material for the manufacture of black tea is exempted under section 5(1)(viiia) of the Wealth-tax Act, 1957, as it stood at the relevant time ? " The question thus recast is answered in the affirmative, that is, in favour of the assessee and against the Revenue. In the light of this answer, the Tribunal shall d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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