TaxTMI 
TaxTMI 
2010 (1) TMI 743
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....tion 10B of the Income-tax Act on the profits derived from its 100 per cent Export Oriented Unit engaged in blending, packing and export of tea bags and tea packets. We have heard Senior Counsel Sri. Joseph Vellappally appearing for the assessee-appellant and Senior Standing Counsel Sri. P.K.R. Menon appearing for the respondent-revenue. 2. Appellant-assessee has a division exclusively engaged in blending, packing and export of tea bags, tea packets and bulk tea-packs. This division enjoys recognition as a 100 per cent Export Oriented Unit which is granted by the Development Commissioner, Ministry of Commerce and Industry, Government of India. Income-tax exemption under section 10B of the Act claimed by the assessee for the assess....
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.... units in the Free Trade Zone provided under section 10AA and the exemption available to 100 per cent Export Oriented Units under section 10B are very similar in nature and the wordings of the statutory provisions are similar in nature and so much so, going by the earlier Division Bench judgment of this court assessee is entitled to exemption under section 10B in respect of the profit derived by it from the 100 per cent Export Oriented Unit. Senior counsel for the assessee also stated that the assessee's case on facts is better because assessee is not only engaged in packing of blended tea in retail and wholesale packs, but is also making a product called "tea bag" which is a product in itself because it is not just packing of blended tea i....
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....processing. In the decision of this court above referred, this court considered the exemption clause in the light of the principles laid down by the Supreme Court in CIT v. Gwalior Rayon Silk Mfg. Co. Ltd. [1992] 196 ITR 149, wherein the Supreme Court held as follows:- "It is settled law that the expressions used in a taxing statute would ordinarily be understood in the sense in which it is harmonious with the object of the statute to effectuate the legislative intention. It is equally settled law that, if the language is plain and unambiguous, one can only look fairly at the language used and interpret it to give effect to the legislative intention. Nevertheless, tax laws have to be interpreted reasonably and in consonance with j....
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....ate, assemble, process or bring into existence, by hand or by machine, a new product having a distinctive name, character or use and shall include processes such as refrigeration, repacking, polishing, labelling, re-conditioning, repair, remaking, refurbishing, testing calibration, re-engineering. Manufacture, for the purpose of this Policy, shall also include agriculture, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture, viticulture and mining." This Court also noticed that the definition of "manufacture" contained in section 2(r) of the Special Economic Zones Act, 2005, was incorporated later under section 10AA of the Income-tax Act with effect from 10-2-2006, which is as follows:- &n....
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....rred by section 40 of the Industries (Development and Regulation) Act, 1951 and Rules made under that Act. It is pertinent to note that the products for which assessee's unit is recognised as a 100 per cent Export Oriented Unit are tea bags, tea in packets and tea in bulk packs. In fact, assessee is exclusively engaged in blending and packing of tea for export and is not manufacturing or producing any other article or thing. Still it is recognised as a 100 per cent Export Oriented Unit by the concerned authority within the meaning of that term contained in the definition clause of section 10B of the Income-tax Act and the department has no case that assessee's unit engaged in export of tea bags and tea packets is not a 100 per cent Export O....