TMI Blog2007 (11) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... ulars regarding the activity undertaken by it, the activity outsourced by it to its sister concern, whether those sister concerns are located in or outside the back ward areas, etc – assessee is not entitled to deduction - 2327 of 2005 - - - Dated:- 29-11-2007 - S. H. KAPAKIA and B. SUDERSHAN REDDY JJ. Vikas Singh, Additional Solicitor-General of India, and R.G. Padia, Senior Advocate (T.A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e hereinbelow the said section 80 HH(1): "Where the gross total income of an assessee includes any profits and gains derived from an industrial undertaking, or the business of a hotel, to which this section applies, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction from such profits and gains of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 80HH(1) is to encourage setting up of new industrial undertakings in backward areas. 7. In the present case, we are concerned with the case of an assessee who claims to be a processor of cashew kernels. At the outset, it may be stated that the said processing consists of various stages like drying followed by heating followed by decorticating which results in emergence of the kernel cov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocess stands undertaken by its sister concerns, whether or not, the material comes back to the assessee for further activities before export. There is no averment that the assessee is the principal manufacturer. In the circumstances, we are of the view that the assessee was not entitled to claim the benefit of section 80HH in the assessment year in question. However, we may add that the Department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wever, even assuming for the sake of argument that the said judgment is applicable, still we are of the view that in the case of Indian Resins and Polymers [1999] 235 ITR 5 the assessee had stated in detail the entire process undertaken by it which fulfills the parameters mentioned hereinabove by us. However, in this case, on account of absence of any details regarding the process undertaken by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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