TMI Blog2006 (11) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. These three appeals by the assessee KRIBHCO are directed against the common order dated January 27, 2006, passed by the Income-tax Appellate Tribunal whereby for the assessment year 1993-94, the assessee's appeal (I. T. A. No.6130/1997) was dismissed and the Revenue's appeal (I. T. A. No. 154/1998) was allowed in part and for the assessment year 1994-95, the Revenue's appeal (I. T. A. No. 5354/1998) was allowed in part. Although the impugned order also allowed in part the Revenue's appeal (I. T. A. No. 756/2000) for the assessment year 1996-97, there is no appeal against that part of the impugned order. 2. Briefly stated, the assessee, which is a multi-State co-operative society, is the manufacturer of urea and ammonia at its p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the findings of the Commissioner of Income-tax (Appeals). 3. Mr. Manmohan, learned senior counsel appearing for the appellant submits that the service charges are relatable to the business of the assessee i.e. sale of ammonia gas to the heavy water plant. The splitting up of the price into cost of production and service charges is only for convenience and cannot result in the denial to the assessee of the benefit of section 80-I to the extent of such service charges. On a consideration of the facts of the case and the object of section 80-I of the Act, we are unable to accept the assessee's contention. In view of the concurrent finding of the Assessing Officer, the Commissioner of Income-tax (Appeals) and the Income-tax Appellate Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eligible to the benefits under section 80HH of the Income-tax Act. A distinction was made between the words "derived from" and "attributable to"; this decision in fact militates against the assessee. We also concur with the view expressed in a decision of this court in Addl. CIT v. Indian Drugs and Pharmaceuticals Ltd . [1983] 141 ITR 134. Therefore, in this respect also, we are of the view that no substantial question of law arises in this case. 6. Finally, it is urged that the interest earned by the assessee on loans advanced by it to its employees was directly attributable to the business of the industrial undertaking and has to be considered for deduction under section 80-I. We concur with the view of the Assessing Officer, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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