TMI Blog2005 (9) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... (No. 2) Act, 1991 with effect from 1-4-1991. In this section Legislature included generation of power or transmission or distribution of power also. If generation of power could be placed within the ambit of the term article , there was no necessity of specifying separately the same in the section. This clearly manifest the intent of the Legislature that the word article used in section 80HH(2) does not include within its ambit power generation. Regarding the requisite number of employees, we find that Assessing Officer has given a categorical finding in the order that the assessee was entrusted the management of looking after the wind mills to its associate-company, Pandian Chemicals. Assessee did not directly employ the requisite number ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s issue in favour of the revenue and against the assessee. In the result, appeal of the assessee stands dismissed. - HON'BLE M.K. CHATURVEDI, VICE-PRESIDENT AND CHANDRA POOJARI, ACCOUNTANT MEMBER For the Appellant : S.P. Chidambaram, Adv. For the Respondent : Sriram Barathan, Adv. ORDER M.K. Chaturvedi, Vice President. 1. This appeal by the assessee is directed against the order of the CIT (Appeals) and relates to the assessment year 1996-97. 2. Shri S.P. Chidambaram, learned counsel for the assessee neatly identified the issues as under: 1. Whether in the facts and circumstances of the case assessee is entitled to claim deduction under sections 80HH and 80-I of the Income-tax Act, 1961 in respect of power generation? 2. Whether in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 80HH. To examine this aspect it is sine qua non to discuss the entire scheme apropos the deduction contemplated in the said section. 5. As per the prescription of section 80HH(2)(i) it is necessary for an industrial undertaking to be eligible for deduction if it has begun or begins to manufacture or produce articles after the 31st day of December, 1970 but before the 1st day of April, 1990, in any backward area. Manufacturing and production of article is, therefore, made a requisite condition for enabling the benefit of the section. The word production or produce when used in juxtaposition with the word manufacture , takes in bringing into existence new goods by a process which may or may not amount to manufacture. It also takes in all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this case it was held that electricity is goods within the meaning of section 2(3) of Central Province and Virar Sales Tax Act. This decision was rendered in the context of the language of a particular statute. As such this meaning cannot be extended to the facts of the present case. 7. As per section 2(7) of the Indian Sale of Goods Act, 1930 goods is every kind of movable property other than actionable claims and money; and includes stock and shares, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale. Under section 3(36) of the General Clauses Act, 1897 movable property of every description except immovable property. The term 'property' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eration of power could be placed within the ambit of the term article , there was no necessity of specifying separately the same in the section. This clearly manifest the intent of the Legislature that the word article used in section 80HH(2) does not include within its ambit power generation. 9. Coming now to the next issue regarding the requisite number of employees, we find that Assessing Officer has given a categorical finding in the order that the assessee was entrusted the management of looking after the wind mills to its associate-company, Pandian Chemicals. Assessee did not directly employ the requisite number of workers. In fact, the assessee did not employ any worker. The assessee only shared the cost of employees with Pandian Che ..... X X X X Extracts X X X X X X X X Extracts X X X X
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