Search Results For: 80HH


Tema Exchangers Manufactures Pvt. Ltd vs. ACIT (Bombay High Court)

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DATE: July 18, 2018 (Date of pronouncement)
DATE: August 3, 2018 (Date of publication)
AY: -
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CITATION:
S. 80-IA: There is a difference between "derived from the undertaking" and "derived from the business of the undertaking". The latter expression is wider than the former. Interest on fixed deposits from Bank and other interest are "derived from the business of the undertaking" and are eligible for deduction u/s 80-IA

Mr. Subramaniam, learned Counsel appearing in support of the appeal points out that Pandian Chemicals Ltd. (supra) was rendered in the context of Section 80HH of the Act and we are concerned with Section 80IA of the Act. It is particularly pointed out that there is a difference in the wording of the two sections as existing during the previous year relevant to the subject assessment year. Section 80HH of the Act grants deduction in respect of the profits and gains derived from industrial undertaking while Section 80IA of the Act as in force at the relevant time grants deduction of profits and gains derived from any business of an industrial undertaking. It is submitted that the above issue is no longer res integra as the issue stand concluded in its favour by the decision of this Court in Commissioner of Income Tax Vs. Jagdishprasad M. Joshi, 318 ITR 420

CIT vs. Hindustan Petroleum Corporation Ltd (Supreme Court)

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DATE: August 3, 2017 (Date of pronouncement)
DATE: August 4, 2017 (Date of publication)
AY: -
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CITATION:
S. 80-IA: Difference between 'manufacturing' and 'production' explained. The word ‘production’ has a wider connotation in comparison to ‘manufacture’. Any activity which brings a commercially new product into existence constitutes production. The process of bottling of LPG renders it capable of being marketed as a domestic kitchen fuel and, thereby, makes it a viable commercial product

At the outset, it needs to be emphasised that the aforesaid provisions of the Act use both the expressions, namely, ‘manufacture’ as well as ‘production’. It also becomes clear after reading these provisions that an assessee whose process amounts to either ‘manufacture’ or ‘production’ (i.e. one of these two and not both) would become entitled to the benefits enshrined therein. It is held by this Court in Arihant Tiles and Marbles P. Ltd. (2010) 320 ITR 79 (SC) that the word ‘production’ is wider than the word ‘manufacture’. The two expressions, thus, have different connotation. Significantly, Arihant Tiles judgment decides that cutting of marble blocks into marble slabs does not amount to manufacture. At the same time, it clarifies that it would be relevant for the purpose of the Central Excise Act. When it comes to interpreting Section 80-IA of the Act (which was involved in the said case), the Court was categorical in pointing out that the aforesaid interpretation of ‘manufacture’ in the context of Central Excise Act would not apply while interpreting Section 80-IA of the Act as this provision not only covers those assessees which are involved in the process of manufacture but also those who are undertaking ‘production’ of the goods

Empire Pumps Pvt. Ltd vs. ACIT (Gujarat High Court)

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DATE: October 14, 2014 (Date of pronouncement)
DATE: November 18, 2014 (Date of publication)
AY: 1991-92
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CITATION:
S. 80HHA/ 80-IA: Interest earned on fixed deposits placed out of business compulsion is "derived" from the undertaking

Income earned from fixed deposit placed for business purpose cannot be treated as income from other source but must be seen as part of the assessee’s business income. In the present case also the assessee was compelled to park a

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