K.N.SETH, J. - (1.) AT the instance of the Revenue, The Tribunal Delhi Bench "D", New Delhi, has referred the following question for the opinion of this Court : "Whether on the facts and circumstances of the case, it could be rightly held that the assessee does not manufacture or 'produce' any article or thing within the meaning of ss. 80B(5) and 80J(4) of the IT Act, 1961 and hence is not entitled to exemption under ss. 80I and 80J of the Act, ? The question arises out of proceedings for the asst. yrs. 1971-72 and 1972-73. Exactly a similar question was referred to this Court relating to asst. yr. 1970-71. This Court observed that there is inherent indication in the Act which shows that, in its context, processed seeds must be treated as falling either in the category of manufacture or production. One of the articles or things which are treated to be manufactured or produced for purposes of S. 33 of the Act, as set out in Sch. V, is "processed" seeds which finds place at item 28 thereof. "Processed seeds, is thus treated as an article which is obtained by the process of manufacture or production for purposes of S. 33 also. Furthermore, S. 80B and Sch. IV also, treat "processed" seeds as an article obtained by the process of manufacture or production. And again S. 80I which granted relief to specified industries, including those which sold "processed" seeds occurred in chapter VI-A of the Act along with S. 80J. Therefore, interpretative uniformity supports the view that 'processed seeds' should be taken as an article which is obtained either by the process of manufacture or production for purposes of S. 80J.
(2.) IT was held that an undertaking engaged in processing of seeds is an industrial undertaking and the income derived from the processing of seeds would be entitled to relief under S. 80J of the Act for the asst. yr. 1970-71. In that case, the Tribunal itself had granted relief to the assessee under s. 80I and the question referred was with reference to S. 80J. The Revenue had submitted to the decision of the Tribunal with regard to relief under S. 80I. In the instant case the question referred covers reliefs under ss. 80I and 80J of the Act. Following the decision of this Court reported in Tarai Development Corporation vs. CIT (1980) 14 CTR (All) 61: (1979) 120 ITR 342 (All), which is a decision inter parties, relating to the asst. yr. 1970-71, we answer the question referred in the negative, in favour of the assessee and against Department. The assessee is entitled to costs which we assess at Rs. 250.;