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11. We have heard the rival submissions, perused the relevant finding of the Ld.CIT(A) and material placed on record. The assessee is mainly in the business of exporting various products of meat to different countries. The assessee had shown sale of 90.47 crores, out of which export sales is approximately 86 crores. The assessee is purchasing raw material, that is, unprocessed meat from various farmers or the meat producers, who are registered with associations called "Jamat" at Belgaum and Kakinada. After procuring the raw meat the same is processed at these places and are placed in carton and thereafter all the finish goods are brought to Mumbai for export. At the assessment stage, the main controversy involved was the genuineness of the purchases on the ground that the cash memos were not proper and were not supported by any documentary evidences. The Assessing Officer had made the disallowance of purchases for sums aggregating to Rs.39,59,07,962/- which were made from the following parties:-

"The Board after examination of the issue is of the view that any person, by whatever name called, who buys animals from the farmers, M / s . G e e S q u a r e E x p o r ts slaughters them and then sells the raw meat carcasses to the meat processing factories or to the traders/retail outlets would be considered as producer of livestock and meat.

4. The benefit of rule 600 of the Income-tax Rules, 1952 shall be available to the person referred to at para 3 above subject to furnishing of the following :

"TO WHOM IT'MAY CONCERN"

This is to state that, the Health Certificate of Meat for Export purpose is issued under Raw Meat (Chilled & Frozen) under the Export (Quality Control and Inspection) Act,1963.

As per the DGFT Notification No. 82 Dt. 31.10.11 Export of Meat and Meat Product is Permitted subject to Material or Meat has been sourced from APEDA Registered Integrated Abattoirs or from APEDA Registered Meat Processing plant.

M / s . G e e S q u a r e E x p o r ts Presently, for applying or obtaining Health Certificate of Buffalo Meat for Export purpose, the Exporter has to submitted along with Application and, Declaration, the A.M./ P.M. Certificate of Slaughtered Animal duly signed by Veterinarian of APEDA Approved Slaughter House.

Health Certificate is required for export shipment of Frozen Buffalo Meat.

Sd/-

Signature· DR. D.S. KAMBLE M.V. Sc.

Dy. COMM. OF ANIMAL HUBANDRY QUALITY CONTROL LABORATORY AAREY, GOREGAON, MUMBAI-54.

The aforesaid certificate duly certifies that for the purpose of export of raw meat, the meat has to be sourced from APEDA Registered Integrated Abattoirs or from APEDA registered meat processing plant and a certificate from veterinarian of APEDA approved slaughter house. Thus, the assessee clearly fulfils the conditions for exporting the meat. The assessee had also furnished a certificate from Veterinary Doctor, before the Ld.CIT(A),who has mainly rejected on the ground that, the same is not in the format as instructed by the Board Circular. This cannot be the reason for drawing any adverse inference to deny benefit under Rule 6DD, if otherwise all the conditions stands fulfilled, which is by and large in the spirit of CBDT guidelines. Thus in our opinion, the ITA No. 6606/Mum/2013 19 Gee Square Exports Assessment Year: 2009-10 assessee's case falls within the beneficial clause of exceptions provided in Rule 6DD, clause(e)(ii) and therefore, no disallowance u/s 40A(3) can be made. Accordingly the disallowance of Rs.26,79,20,745/- as made by Ld. CIT(A) stands deleted.