P.P. Naolekar, J.

1. The question for determination in these appeals lies in a narrow compass, but it involves a question of considerable nicety under the provisions of the Indian Income Tax laws. It is in effect, whether in the computation of the composite income derived from sale of tea grown and manufactured by the seller and exported out of India under Section 2(1A) of the Income Tax Act, 1961 (hereinafter referred to as "the Act of 1961"), read with Rule 8 of the Income Tax Rules, 1962 (hereinafter referred to as "the Rules of 1962"), the deduction under Section 80HHC in respect of profits derived from export of tea out of India should be allowed as per permissible deduction before apportionment of non-agricultural income and agricultural income under Rule 8 of the Rules of 1962 and thereafter the income so computed, as if it is a business income, is to be apportioned on the basis of 40 per cent being non-agricultural income and 60 per cent, being the agricultural income.

2. The facts necessary, in brief are-M/s. George Williamson (Assam) Ltd., and the Williamson Financial Services Ltd., are assessees under the Income-tax Act, and are limited companies engaged in the bus