TMI Blog1996 (3) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... e business of transporting goods. In the previous year ended June 30, 1977, corresponding to the assessment year 1977-78, the assessee had increased the fleet of trucks by increasing its share capital. The assessee claimed that 1/10th of the total expenditure of Rs. 72,614 incurred on the above amounting to Rs. 7,261 should be allowed as a deduction under section 35D(1)(ii) of the Act. This was disallowed by the Income-tax Officer in the view that the deduction under section 35D was allowable only in connection with the extension of the industrial undertaking and, therefore, the deduction could not be granted to the assessee as no new industrial unit has been set up by the assessee in this year. On appeal, the Appellate Assistant Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion that in the absence of a definition the intention of Parliament has to be ascertained as to the scope of this expression only with reference to the general scheme of this Act read with the Finance Act. Since there was no provision for granting any deduction in respect of transport undertakings, and the emphasis was on the production of the goods and not distribution of goods, it was difficult to adopt a wider meaning of "industry" which may include hospitals, public utility services and even an office of the chartered accountant. For the purpose of the provisions of the Income-tax Act conferring relief from tax, the Appellate Tribunal followed a canon of construction that in respect of exemptions or deductions from liability to tax it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artment submitted that the words "industrial undertaking" occurred in various provisions in the Act, whereunder it is clearly stated that "industrial undertaking" means, an undertaking which manufactures or produces any article. Therefore, according to learned standing counsel, if there is no manufacturing activity or processing, such an undertaking cannot be considered as an industrial undertaking. It was also pointed out that the transport business was not shown as an industrial undertaking anywhere in the Act. According to learned standing counsel, in fact under section 32A, the transport business was specifically excluded while considering the industrial undertaking. For these reasons, learned standing counsel submitted that since the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... denied by the Department. The assessee did not challenge the Department's action in refusing to grant amortisation under section 35D in that assessment year. The present assessment year, viz., 1977-78, is the second year. In this assessment year also, the Department refused to grant amortisation. The Tribunal accepted the order passed by the authorities below since the assessee has not established that the assessee is manufacturing or processing any new article. As we have already seen, unless the assessee satisfies both the conditions prescribed under section 35D, the benefit under the said section would not be available to the assessee. There is no material on record, in the present assessment year under consideration, to show that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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