1999 (4) TMI 2

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....x Act, 1961, the following three questions amongst others were answered by the High Court in favour of the assessee and against the Revenue: For assessment years 1974-75 and 1975-76 : "4. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee was not entitled to deduction of Rs. 66,352 plus Rs. 1,60,248 for the assessment year 1974-75 ....

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....here were in all eight questions forming the subject-matter of the reference before the High Court and as to which the Revenue had filed these appeals. However, vide order dated November 3, 1995, this court has entertained the appeals confined to the abovesaid three questions only. So far as question No. 6 and 8 are concerned, at the very outset learned counsel for the Revenue has very fairly s....

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....d of rice amongst the cultivators and farmers who grow rice. The Tribunal disallowed the deduction on the ground that the rice husk was not a "product of agriculture" because it was not a direct outcome of agricultural endeavour. According to the Tribunal what was produced by the cultivator was paddy which alone could be considered as an agricultural product, The husk was the result of process of ....

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....ction in respect of expenditure incurred in providing to the agriculturists services and facilities specified therein. The term "agricultural product" or "product of agriculture" is required to be construed liberally so as to include not merely the primary product as it actually grows, but also a product which undergoes a simple operation so as to make it more saleable or more useable. The rice an....