S. P. Bharucha, J. - (1.) The only question with which we are concerned in this appeal by the Revenue, relating to the Assessment Year 1977-78, reads thus:"Whether, on the facts and in the circumstances of the case:- i) the assessee's business involves 'production' ii) the assessee is entitled to exemption under S. 80-HH of the I.-T. Act, 1961 -
(2.) The assessee claimed the allowance under S. 80-HH of the Income-tax Act, 1961, on the ground that it was an industrial undertaking that manufactured/produced articles. It would appear from the judgment of the Tribunal that the assessee bought shrimps, peeled them and froze them. There is no other material on the record which indicates what was done by the assessee and how it was done. The Income-tax Officer negatived the claim. The Commissioner of Income-tax (Appeals) and the Tribunal upheld the claim.
(3.) From the order of the Tribunal the question aforementioned was referred to the High Court for its opinion. The High Court held that buying and processing of shrimps involved production and, therefore, the assessee was entitled to the allowance that it claimed. It followed its judgment in Commr. of Income-tax v. Marwell Sea Foods (1987) 166 ITR 624 (Kerala).;