- (1.) THE present appeal has been filed under section 260A of the Income Tax Act (hereinafter referred as the 'Act') against the order dated 31/7/2003 passed by the Income Tax Appellate Tribunal, Agra. The appeal has been admitted on the following questions of law:- "(1) Whether on the facts and in the circumstances of the case, the assessee is an industrial undertaking, engaged in the manufacture or production of a thing or article within the meaning of Section 80HH and 80-I of the Income Tax Act, 1961? (2) Whether on the facts and in the circumstances of the case, the Tribunal is justified in confirming the order of the CIT(A) in directing the A.O. to allow the claim of deduction under section 80HH and 80-I of the Act on the profit earned on sales of purchased oil form local parties after filtering the same and putting its own label on the packings."
(2.) BRIEFLY stated the facts giving rise to the present appeals are as follows:- The appeal relates to the assessment year 1991-92. The respondent assessee is engaged in the business of manufacturing and sale of mustered oil from seeds and oil cakes etc. It also purchased raw oil from the market and after filtering and other process makes it fit for human consumption and sells the same. It has claimed exemption under section 80-H H and 80-I of the Act. The Assessing Officer had disallowed the exemption in respect of profit earned on oil which had been purchased from open market and after various process had sold the same. The Commissioner of Income Tax (A) had held the order passed by the Appellate Tribunal. The Commissioner of Income Tax (A) by following the order of Income Tax Appellate Tribunal vide order dated 17.7.1995 in respect of the earlier assessment had directed the Assessing Officer to allow the claim in respect of 80-HH and 80-1 of the Act. The Revenue feeling aggrieved preferred an appeal before the Tribunal. The Tribunal relying upon its earlier order for assessment has been dismissed the appeal.
(3.) WE have heard Sri D.Awasthi, learned senior standing counsel and Sri Manish Goyal, learned counsel for the respondent.;