TMI Blog1998 (2) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... ion referred to us at the instance of the Revenue in respect of the assessee's assessment for the assessment year 1976-77 is as to whether on the facts and in the circumstances, the Appellate Tribunal was correct in holding that the assessee-company was entitled to the relief under section 80HH in respect of its business which also comprised of business activities other than manufacturing one ? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is uncalled for. That view of the Tribunal has been called into question by the Revenue. Section 80HH(1) which is relied on reads as under : "Deduction in respect of profits and gains from newly established industrial undertakings or hotel business in backward areas.-(1) Where the gross total income of an assessee includes any profits and gains derived from an industrial undertaking or the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before it can be regarded as industrial undertaking for the purpose of this section. Section 80HH(2)(i) mandates that the assessee who claims benefit of this section should have begun "manufacture" or "production" of articles after December 31, 1970, in any backward area. Though the term "industrial undertaking" is capable of wider definition, and the word "industry" has a very large ambit, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fit under section 80HH, on the ground that the account is one and the activities of the assessee, includes manufacture, it cannot claim benefit under section 80HH in respect of an activity that does not involve manufacture or production of articles. We therefore answer the reference in the negative, in favour of the Revenue and against the assessee. The Revenue is entitled to its costs in the su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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