Commissioner Of Income Tax, Kerala vs M/S Tara Agencies

The Supreme Court ruled that the respondent, engaged in blending tea for export, is entitled to a weighted deduction under Section 35B(1A) of the Income Tax Act, 1961, for the assessment year 1979-80. The Court clarified that the benefit is applicable only if the goods are manufactured or produced by a small scale industrial undertaking, not merely processed. The High Court's decision affirming the Tribunal's ruling in favor of the respondent was upheld, confirming the entitlement to the deduction.