ORAL JUDGMENT

(Per : HONOURABLE MR.JUSTICE D.A.MEHTA)

1.The following common question of law has been referred by the Income Tax Appellate Tribunal, Ahmedabad Bench “A”, under Section 256(1) of the Income Tax Act, 1961 (the Act) at the instance of the Commissioner of Income Tax in all the three references. Therefore, all the three references have been heard together and are being disposed of by this common judgement and order.

“Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that HPS groundnuts exported by the assessee did not come within the ambit of expression “agricultural primary commodities” in Section 80HHC(2)(b)(i) of the I.T. Act, 1961 and that deduction under Section 80HHC(i) of the Act was allowable?”

2.It is an accepted position between the parties that the lead matter is Income Tax Reference No.113 of

1994 and hence, the facts necessary for the determination of the question are taken from the said reference.

3. The assessment year is 1983-84 and the relevant accounting period is 31st December 1982. The assessee, a State Government Corporation is carrying on business of export of various commodities. A deduction w