TMI Blog1981 (7) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... court : " Whether, on the facts and circumstances of the case, the income received by the assessee by way of sub-contracts and sale of scraps amounting to Rs. 6,472 for the assessment year 1968-69 and Rs. 48,302 for the assessment year 1969-70 should be considered as relatable to priority industry and hence as qualifying for deduction under section 80-I of the Income-tax Act, 1961 ? " The asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment. Subsequently, the ITO passed orders rectifying the assessments for the assessment years 1968-69 and 1969-70. In doing so, he granted relief under s. 80-I only on Rs. 3,96,775 computed as the income relating to priority industry for the assessment year 1968-69. Similarly, for the assessment year 1969-70, the relief was granted only on a sum of Rs. 1,97,154. The assessee appealed to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hence, as far as the sale of scrap is concerned, there can be no dispute that it was one attributable to a priority industry as it is a by-product out of the manufactured items coming within the scope of a priority industry. Therefore, applying the law laid down by the Supreme Court, we hold that the Tribunal acted properly in allowing the relief to the extent of the sale of scraps. We have to n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with reference to an item falling within the category of priority industry, the income arising from the leasing of the machinery would be attributable to a priority industry. Similarly, the export incentives received were also treated as attributable to the priority industry. But, as far as the interest income was concerned, it was held that the amount had been deposited in a bank, just as any ot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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