TMI Blog1996 (12) TMI 386X X X X Extracts X X X X X X X X Extracts X X X X ..... would be entitled to relief under Section 80-E and 80-I of the Income-Tax Act, 1961 for the assessment years 1966-67 and 1967- 68 respectively on the income earned by it, from import and sale of spare parts from abroad? The assessee is engaged in the business of manufacturing Ashok Leyland trucks and also spare parts of those vehicles. It was also importing the spare parts from abroad and selling the same to the persons who have purchased the trucks from it. As and when the manufacture of spare parts by the assessee increased, there was a corresponding reduction in the quantum of imports of spare parts. Some profit was earned by the assessee on the sale of vehicles. The volume of turnover and income relating to sale of spare parts is o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned counsel for the assessee commended the reasoning of the said decision for our acceptance. Sections 80-E and 80-I were couched in identical terms. They provided for certain deduction from the profits and gains of a company attributable to priority industry. Insofar as relevant Section 80-I(1) reads: ...(1) In the case of a company to which this section applies, where the gross total income includes any profits and gains attributable to any priority industry, there shall be allowed, in accordance with and subject to the provisions of this Section, a deduction from such profits and gains of an amount equal to eight per cent thereof in computing the total income of the company. ........................... . The expression ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and sold them during the accounting years relevant to the assessment years concerned herein. It is on these facts that the question referred has to be answered. We are of the opinion that reading the relevant portion of sub-section (1) of Section 80-I alongwith the definition of priority industry in Section 80-B(7), it must be held that the profits and gains arising from import and sale of spare parts was attributable to the industry (priority industry) carried on by the assessee. On the facts found by the Tribunal it is difficult to disassociate the said activity from the main activity carried on by the assessee viz., manufacture and sale of the Ashok Leylands trucks. It was intimately connected with the priority industry set up and bein ..... X X X X Extracts X X X X X X X X Extracts X X X X
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