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2006 (8) TMI 163 - HC - Income TaxDeduction u/s 80-IA - profits derived from the business of sale of PVC, used as manufacturing of footwear - Considered as profits and gains derived from industrial undertaking? - HELD THAT:- Sub-section (5) of section 80-IA of the Act provides for the quantum of benefit available to an industrial undertaking. It clearly provides for a fixed percentage of the profits and gains derived from such industrial undertaking. We have also gone into similar issue in Nahar Exports Ltd. v. CIT [2006 (7) TMI 110 - PUNJAB AND HARYANA HIGH COURT] wherein, following passage from the judgment of the hon'ble Supreme Court in Sterling Foods' case [1999 (4) TMI 1 - SUPREME COURT] was relied upon, which deals with the words "derived from." Accordingly, we are of the view that the assessee will not be entitled to deduction u/s 80-IA of the Act in respect of profit derived from the business of trading of products of other concerns as the same cannot be held to be profits and gains derived from industrial undertaking. The questions are, accordingly, answered against the assessee and in favour of the Revenue - Accordingly, the appeal is dismissed.
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