TMI Blog2007 (5) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... an industrial undertaking and entitled to deduction under section 80-I of the Act ? 2. Whether, on the facts and in the circumstances of the case, the hon'ble Income-tax Appellate Tribunal is justified in directing that deduction under section 80 should be allowed without deducting the amount of deduction permissible under section 32AB of the Act ?" Question No. 1 2 Under section 80-I of the Income-tax Act, 1961, a deduction of 20 percent is given from the gross total income of an assessee, if the income includes any profits or gains derived from an industrial undertaking. 3 Income derived from items other than industrial undertaking, which are mentioned in section 80-I is not relevant for this case. 4 In the case before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the assessee merely because the original nucleus funds which have yielded the interest come from an industrial undertaking. 10 Learned counsel for the Income-tax Department has placed reliance upon a decision of the Calcutta High Court in the case of Indian Aluminium Co. Ltd. v. CIT [1980] 122 ITR 660 which supports the contention of the Department and also supports the view expressed by us above. 11 As against this, learned counsel for the assessee placed reliance upon a decision of the Nagpur Bench of the Bombay High Court in the case of CIT v. Nagpur Engineering Co. Ltd. [2000] 245 ITR 806. That decision does not give its own reasoning but merely relies upon another decision in the case of CIT v. Paramount Premis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal was not justified in holding that interest income from investment in banks accruing to the assessee should be treated as "income derived from an industrial undertaking" and such interest income is not entitled to deduction under section 80-I of the Act. Question No. 2 15 This question requires consideration whether the deduction under section 80-I should be allowed on the "gross total income" computed without deductions being made under section 32AB. Learned counsel for the Department relies upon the definition given in section 80B(5). According to that definition as it stands with effect from April 1, 1988, "gross total income" in Chapter VI-A means the total income computed in accordance with the provisions of the Act be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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