Aloke Chakrabarti, J. - (1.) Facts relevant in the present appeal under Section 260A of the IT Act are that the assessee is a public limited company engaged, inter alia, in the business of manufacturing, selling and exporting under its own brand name, packet tea, conventional and instant coffee, oleoresins, meat products and marine products. On 7th March, 1994, Lipton India Ltd: was amalgamated with Brooke Bond India Ltd. and the amalgamated company changed its name to Brooke Bond Lipton India Ltd. which has since amalgamated with the Hindustan Lever Ltd.
(2.) For the asst. yr. 1984-85, the assessee made a claim for deduction in respect of investment allowance of Rs. 91,84,078 under Section 32A of the IT Act, 1961 in respect of new machinery purchased and put to use during the previous year relevant to the said assessment year. Contention of the assessee was that it is not merely a blender of tea, it produces a new and distinct type of tea having a pre-determined quality in terms of test, liquor, aroma and hygienically packed through mechanical contrivances which the assessee markets in packet and under different brand names and therefore, the assessee should be considered, not only as a blender of tea but also a manufacturer or at least a producer of certain types of tea in packed condition. Argument advanced by the learned counsel for the appellant was only to the aforesaid aspect and therefore, facts relating to items other than tea need not be discussed here.
(3.) The AO held that at best the assessee can be considered to be engaged in 'processing' only for which deduction for investment allowance under Section 32A of the Act would not be available and accordingly the claim of the assessee towards the same was not entertained by the AO.;