TMI Blog1996 (3) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 256(1) of the Income-tax Act, 1961 (for short, "the Act") : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee-company was not entitled to deductions under sections 80HH and 80-I since the business of construction of roads and buildings did not bring it within the category of an 'industrial undertaking' ?" Briefly stated, the facts of the case are that the assessment years are 1984-85 and 1985-86, previous year ending on December 31, 1983, and December 31, 1984, respectively. The assessee is a private limited company engaged in the business of construction of roads and buildings, particularly, the industrial sheds. The Income-tax Officer allowed deduction of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6(1) of the Act. On these applications, the Tribunal stated the case and referred the aforesaid question for our consideration and opinion. We have heard Shri S. M. Dagaonkar, learned counsel for the applicant/assessee, and Shri D. D. Vyas, learned counsel for the non-applicant/Department. Section 80HH of the Act permits certain deduction in respect of profits and gains from newly established industrial undertakings or hotel business in backward areas. Section 80-I of the Act permits deduction in respect of profits and gains from industrial undertakings after a certain date, etc. It is thus clear that in order to claim deduction, the assessee was required to show that it was an industrial undertaking, i.e., industrial company. "Indust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel for the applicant was unable to show us any activity of the assessee which may earn the insignia of industrial undertaking. On appreciation of the facts as presented, the Tribunal concluded that the assessee was not an industrial undertaking and was thus disentitled to obtain the deductions under the aforesaid provisions. This conclusion is not shown to be perverse or inconsistent with law. That being so we are satisfied with the correctness of the order passed by the Tribunal. Ex consequenti, we hold that the Tribunal was right in its conclusion that the assessee-company was not entitled to deductions under sections 80HH and 80-I of the Act as the business of the assessee-company did not bring it within the category of industria ..... X X X X Extracts X X X X X X X X Extracts X X X X
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