- (1.) This appeal is at the instance of the Assessee under Section 260A of the Income-tax ("Act") and is directed against an order dated March 31, 2004 passed by the Income-tax Appellate Tribunal "D" Bench, Kolkata in ITA No. 97 (Cal) of 2000 & ITA No. 1344 (Cal) 2001 disposing of those two appeals relating to Assessment Years 1997-97 and 1997-98 by a common judgment. The Appellant before us has paid double court fees as by a single appeal it has challenged order in respect of two assessment years.
(2.) The Appellant is a public limited company and carries on business of growing and manufacturing tea. As part and parcel of its business, Appellant purchased a small quantity of tea manufactured by other tea estates and blended those with the tea manufactured by it. According to the Appellant, in order to get the appropriate blend, samples of different varieties of tea are mixed in appropriate proportions and tasted. As a consequence of such blending of different varieties of tea, the Appellant claims, there is a qualitative change and the blended tea is transformed into a different quality from the tea which was blended. According to the Appellants, such blended tea is exported by the Appellant.
(3.) For the relevant assessment year, the contention of the Appellant was that the Appellant was entitled to the benefit provided in Sub-Section 3(a) of Section 80HHC as blending of tea amounts to processing within the meaning of said provision.;