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1 - 10 of 14 (0.36 seconds)Section 80J in The Income Tax Act, 1961 [Entire Act]
Section 80HHC in The Income Tax Act, 1961 [Entire Act]
Commissioner Of Income-Tax vs Asian Marine Products Pvt. Ltd. on 1 April, 1998
Similarly he brought to the notice of the Bench the decision of the Hon'ble Madras High Court in the case of CIT v. Asian Marine Products (P) Ltd. (sic) wherein it was held that where an assessee company had not done any manufacturing business and had let out the cold storage plant on hire during the relevant period, it was held that the assessee is not entitled to special deduction under Section 80J.
National Thermal Power Corporation ... vs Addl. Commissioner Of Income Tax on 26 May, 2004
6.4 We now consider the issue whether the entire profits and gains derived from the business of a small scale industrial undertaking which operates its cold storage plant is exempt from taxation or not. This argument of Shri Arvind Sonde on the issue cannot be accepted for the reason that the deduction in this case is governed by Section 80-IB(3). This section clearly provides that the amount of deduction shall be a particular percentage of the profits and gains derived from its industrial undertaking which operates its cold storage plant. In our humble opinion, in the case of an industrial undertaking operating its cold storage plant, the profits eligible for deduction would be restricted to the profits generated from activity of operating the cold storage plant which would include (i) the activity of storage of goods belonging to others against charges and (ii) activity of storage of its own goods for sale. In the case of former, it would relate to the profit derived from such job work which in the later case would mean the profit derived by the assessee from the sale of goods which were kept in the cold storage. The other profits, even attributable to such activity, would not be eligible for deduction. For example, such undertaking may have income by way of interest on deposits/loans, etc., rent by letting out a portion of its building or profits on mere purchase and sale of goods which are not stored in its cold storage plant, etc. Such income cannot be said to be income derived from the business of an undertaking. This view has also been taken by the co-ordinate Bench in the case of National Thermal Power Corpn. v. Addl. CIT (2004) 91 ITD 101 (Delhi). So long as the activity of operation of cold storage is distinct and independent small-scale industrial unit, its income either by job work or on account of purchase, storage and sale of goods having direct nexus with cold storage plant would be eligible for deduction under Section 80-IB. Other income which are incidental to such business would not be eligible for deduction since legislation has used the words 'derived from' and not 'attributable to'.
Section 80HH in The Income Tax Act, 1961 [Entire Act]
Section 80HHA in The Income Tax Act, 1961 [Entire Act]
Section 80I in The Income Tax Act, 1961 [Entire Act]
Commissioner Of Income-Tax, ... vs Relish Goods on 11 March, 1999
7. Thus we set aside the issue to the file of the assessing officer with the direction to consider and compute the "profits and gains derived from the industrial undertaking which operates its cold storage plant" and to grant suitable deduction under Section 80-IB(1) read with Section 80-IB(3) of the Act. The assessing officer shall exclude such business profits which cannot be said to have been derived from the industrial undertaking, by keeping in mind the tests laid down by the Hon'ble Supreme Court in the case of Sterling Foods (supra), Pandian Chemicals and other similar cases. The assessing officer shall also keep in mind the provisions of Section 80-IB(13) while granting deduction, for the reason that the assessee had also claimed benefit under Section 80HHC.