C.S.P. Singh, J.

1. THE Income-tax Appellate Tribunal (Delhi Bench "A") has at the instance of the assessee referred the following question of law for the opinion of this court :

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that income derived by the assessee from processing of seeds was not entitled to relief under Section 80J of the Income-tax Act, 1961, for the assessment year 1970-71 ?"

2. THE assessee is an incorporated company and the case relates to the first year of assessment. It returned an income of Rs. 47,726 and claimed exemptions under Sections 80-I and 80J of the Act. THE exemptions claimed were disallowed by the ITO. THE AAC allowed the exemption claimed under Section 80J, but refused that claimed under Section 80-I. THE department filed an appeal before the Tribunal, which was followed by a cross-objection by the assessee. THE Tribunal held that the assessee was not entitled to relief under Section 80J, but allowed exemption under Section 80-I. THE controversy in the present reference is as to whether the assessee was entitled to relief under Section 80J in respect of income derived by the sale of processed se