2001 INSC 0205
                                    SUPREME COURT OF INDIA

                                                Indian Poultry

                                                      Vs.

                                                 I.T. Commr.

                                           C.A.No.7584 of 1997

                    (S. P. Bharucha, N. Santosh Hegde and Y. K. Sabharwal JJ.)

                                                 22.02.2001

                                                   ORDER

1. The three questions which the High Court answered against the assessee read thus:

        "(i) Whether on facts and in the circumstances of the case, the Tribunal was right in
        law in holding that the assessee, being not an Industrial Undertaking, it is not entitled
        to deduction u/S. 80-I of the Income-tax Act, 1961?

        (ii) Whether on facts and in the circumstances of the case, the Tribunal was right in
        law in holding that the assessee is not entitled to deduction u/Ss. 80-HH and 80-I of
        the Income-tax Act, 1961, as an Industrial Undertaking?

        (iii) Whether on facts and in the circumstances of the case, the Tribunal was right in
        law in not following the decision of Hon'ble Andhra Pradesh High Court in the case
        of Venkateshwara Hatchery P. Ltd.1, which was favourable to the assessee,
        particularly when there was no decision of jurisdictional High Court on the point at
        issue?"

2. It is not in dispute that the case is covered against the assessee by the judgment of this
Court in C.I.T. v. Venkateshwara Hatcheries (P) Ltd.2. The further point that was made by
the assessee was that it not only reared the chicken but also dressed them for sale in the
market and, therefore, a process of manufacture was carried out. But, it appears that there
was no material laid before the Tribunal in this behalf. It is, therefore, not possible to
conclude in the present matter that the dressing of poultry is tantamount to manufacture.

3. The appeal is dismissed.

4. No order as to costs. Appeal dismisssed.

1(1988) 174 ITR 231
2(1999) 237 ITR 174

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