TMI Blog1996 (12) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... EDDY J.-- In these appeals preferred by the assessee against the decision of the Madras High Court, the words "attributable to" occurring in section 80E/80-I of the Income-tax Act, 1961, fall for consideration. The following question was referred to the High Court under section 256(1) of the Income-tax Act, 1961. " Whether, on the facts and in the circumstances of the case, it has been rightly held that the assessee would be entitled to relief under sections 80E 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was made under section 256 and on this occasion the High Court has answered the very same question, between the very same parties, in favour of the assessee and against the Revenue following the decision of this court in Cambay Electric Supply Industrial Co. Ltd. v. CIT [1978] 113 ITR 84. The later decision of the High Court is reported in CIT v. Ashok Leyland Ltd. [1981] 130 ITR 900 (Mad). Learned counsel for the assessee commended the reasoning of the said decision for our acceptance. Sections 80E and 80-1 were couched in identical terms. They provided for certain deduction from the profits and gains of a company attributable to priority industry. In so far as relevant, section 80-I(1) reads : " (1) In the case of a company to which t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e found it difficult during some years to get the requisite spare parts either because the spare parts manufactured by the assessee were not sufficient to meet the demand or because the assessee did not manufacture those particular spare parts. In the said circumstances and as a matter of commercial expediency, the assessee imported such spare parts 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 along with the definition of "priority industry" in section 80B(7), it must be held that the profits and gains arising from import and sale of spa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lancing charge arising from the sale of old machinery and buildings cannot be regarded as profits and gains derived from the conduct of the business of generation and distribution of electricity. In this connection, it may be pointed out that whenever the Legislature wanted to give a restricted meaning in the manner suggested by the learned Solicitor-General, it has used the expression 'derived from', as, for instance, in section 80J. In our view, since the expression of wider import, namely, 'attributable to', has been used, the Legislature intended to cover receipts from sources other than the actual conduct of the business of generation and distribution of electricity. " In our opinion, the said observations conclude the issue, as has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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