TMI Blog2016 (11) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... ited vs. CIT (2003 (4) TMI 3 - SUPREME Court). All assessee’s contention cannot be accepted. In facts too, P.R.Prabhakar’s case (2006 (7) TMI 121 - SUPREME Court ) as relied by assessee is distinguishable because one of the essential business of the assessee was activity of commission/brokerage and procuring orders of export for others. The question as to whether that income was “income derived from export business” therefore could not be said to have arisen. In any event P.R.Prabhakar’s case (supra) does not refer to the previous judgment in Cambay Electric Supply Industrial Co. Ltd.’s case (1978 (4) TMI 1 - SUPREME Court)where this court had clearly stated that the expression "derived from" had a narrower connotation than the expressio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R 218 (SC), the appeal has to be allowed. It is submitted by Mr.Shivpuri that the expression derived from has been interpreted in a narrow manner consistently by the Supreme court which has held that there should be an immediate proximity between the nature of the income earning activity and the export business of the assessee for the income to be covered under the provision. 3. Counsel for the assessee relied upon the ruling in P.R.Prabhakar vs. CIT (2006) 6 SCC 86. It is submitted that like in this case in P.R.Prabhakar s case (supra) too the assessee had earned commission income for which benefit under Section 80 HHC was allowed. 4. In Pandian Chemicals Limited s case (supra), the court has held as follows: 4. Section 80HH o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eral, 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. 6. The word derived has been construed as far back in 1948 by the Privy Council in CIT v. Raja Bahadur Kamakhaya Narayan Singh [1948] 16 ITR 325 when it said: The word 'derived' is not a term of art. Its use in the definition indeed demands an enquiry into the genealogy of the product. But the enquiry should stop as soon as the effective source is discovered. In the genealogical tre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Supreme Court in four judgments relied upon by the revenue, the assessee s contention cannot be accepted. In facts too, P.R.Prabhakar s case (supra) is distinguishable because one of the essential business of the assessee was activity of commission/brokerage and procuring orders of export for others. The question as to whether that income was income derived from export business therefore could not be said to have arisen. In any event P.R.Prabhakar s case (supra) does not refer to the previous judgment in Cambay Electric Supply Industrial Co. Ltd. s case (supra) and Pandian Chemicals Limited s case (supra). 7. For the foregoing reasons the appeal is to succeed. The question of law is answered in favour of the revenue. 8. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
