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2013 (10) TMI 1036 - HC - Income TaxDeduction u/s 80-I - Service charges received – Whether service charges received from the Heavy Water Board of Department of Atomic Energy could not be considered as profit derived from the industrial undertaking to qualify for deduction under Section 80-I of the Act – Held that:- Reliance has been placed upon the judgment in the case of Krishak Bharti Cooperative Limited versus Deputy Commissioner of Income Tax and Another [2013 (7) TMI 632 - DELHI HIGH COURT], wherein it has been held that after examining the nature and character of the service charges, the agreement between the appellant and Heavy Water Board, Department of Atomic Energy, Government of India, a Division Bench has opined that the appellant-assessee would be entitled to benefit under Section 80-I in respect of service charges received and the same were profits and gains derived from an industrial undertaking – Decided in favor of Assessee. Whether equipment hire charges; crane hire charges; Ammonia Tanker hire charges are eligible for deduction u/s 80-I of the Income Tax Act – Held that:- To examine whether the income was derived from an industrial undertaking, it is imperative to trace the source of profit or income to manufacture/production. Transportation, is post-manufacture and takes place after the goods or articles have been manufactured in the industrial undertaking. They relate to activity of transportation of the said articles or goods from the factory to the place of the consumer/customer. It is a service and does not partake character and is not a part of manufacture – Decided against the Assessee.
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