Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2016 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (11) TMI 372 - HC - Income TaxEntitlement to deduction under section 80HHC - profits and gains "derived from" an industrial undertaking - Held that:- The word "derived from" in Section 80HH of the Income-tax Act, 1961, must be understood as something which has direct or immediate nexus with the appellant's industrial undertaking. Although electricity may be required for the purposes of the industrial undertaking, the deposit required for its supply is a step removed from the business of the industrial undertaking. The derivation of profits on the deposit made with Electricity Board cannot be said to flow directly from the industrial undertaking itself. See Pandian Chemicals Limited vs. CIT (2003 (4) TMI 3 - SUPREME Court). All assessee’s contention cannot be accepted. In facts too, P.R.Prabhakar’s case (2006 (7) TMI 121 - SUPREME Court ) as relied by assessee is distinguishable because one of the essential business of the assessee was activity of commission/brokerage and procuring orders of export for others. The question as to whether that income was “income derived from export business” therefore could not be said to have arisen. In any event P.R.Prabhakar’s case (supra) does not refer to the previous judgment in Cambay Electric Supply Industrial Co. Ltd.’s case (1978 (4) TMI 1 - SUPREME Court)where this court had clearly stated that the expression "derived from" had a narrower connotation than the expression "attributable to" and Pandian Chemicals Limited’s case (supra). - Decided against assessee.
|