TMI Blog1993 (1) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... y industry and qualified for relief under section 80-I of the Income-tax Act, 1961, for the assessment years 1971-72 and 1972-73 ? Rs. Rs. (a) Hire charges of meters, transformers, switchgears, etc. 18,02,602 19,61,992 (b) Interest on call and fixed deposits 5,97,133 1,33,797 (c) Profit under section 41(2) 26,619 1,12,649 (d) Other miscellaneous receipts including meter fixing charges, etc. 34,364 37,451 (e) Electricity duty collection commission 6,000 6,000 (f) Miscellaneous receipts 38,998 63,000 (g) Profit in exchange on loan in foreign currency 9,415 11,330. " The respondent (hereinafter referred to as "the assessee") is a company engaged in the business of generation and distribution of electricity. The assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness of generation and distribution of electricity. He further held that the income so earned by the assessee was incidental to the carrying on of its business. Applying the ratio laid down in the case of Cambay Electric Supply Industrial Co. Ltd, [1978] 113 ITR 84 (SC), he accepted the assessee's contention that it was entitled to deduction under section 80-I of the Act in respect of the aforesaid receipts. Being aggrieved by the order of the Appellate Assistant Commissioner, the Revenue came up in appeal before the Income-tax Appellate Tribunal (for short, "the Tribunal") and contended that since the aforesaid receipts were not incidental to the carrying on of the business of the assessee, the assessee was not entitled to deduction und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter, he submitted that the Tribunal was fully justified in holding that the aforesaid receipts would qualify for deduction under section 80-I of the Act. As regards item (b), he invited our attention to the decision of this court in the case of CIT v. United Carbon India Ltd. [1991] 190 ITR 622, and pointed out that, in the said case, the High Court was pleased to hold that the interest earned would qualify for deduction under section 80-I of the Act. Thereafter, he invited our attention to the relevant portion of the order of the Tribunal under reference as well as the statement of the case with a view to impress upon us that the Tribunal has given a clear finding that the aforesaid receipts were incidental to the business of generatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the phrase 'profits and gains attributable to the business of' the specified industry (here generation and distribution of electricity) on which the learned Solicitor-General relied, it will be pertinent to observe that the Legislature has deliberately used the expression 'attributable to' and not the expression 'derived from'. It cannot be disputed that the expression 'attributable to' is certainly wider in import than the expression 'derived from'. Had the expression 'derived from' been used, it could have with some force been contended that a balancing 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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