2009 (5) TMI 33

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....NT DIPAK MISRA, J. - This is an appeal by the Revenue preferred under Section 260A of the Income Tax Act, 1961, (for brevity 'the Act'). Be it noted, the appeal was barred by limitation.  Notices were issued to the assessee-respondent and after hearing the assessee, the delay was condoned. 2. We have heard Mr. Sanjay Lal, learned counsel for the revenue and Mr. H.S. Shrivastava, learned....

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....mbrate the facts in brief. 5. The respondent-assessee deals in 'Tendu patta' and carries on tobacco business. For the assessment year 1991, the assessee offered income in respect of tendu patta business on the basis of provisions of Section 44AC. For the relevant accounting year the assessee had purchased tendu patta from the Conservator of Forest, Shipuri for Rs.  50,88,900/-and returned ....

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....e to hold that the activity which is undertaken by the assessee in respect of tendu leaves, is neither a manufacturing activity nor a processing activity. Being of this view, the tribunal allowed the appeal of the assessee. 8. It is submitted by Mr. Sanjay Lal, learned counsel that the tribunal has fallen into grave error by expressing the opinion that no change occurs in case of tendu patta. L....

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....rest produce. The general features of trade in tendu leaves consist of the purchase of tendu forest units from the State Governments and thereafter by processing the tendu leaves they are marketed. The business of processing of tendu leaves comprises obtaining the rights of collection and purchase of raw tendu leaves from the concerned forest department. There are other processes undertaken like c....