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Issues:
1. Whether the assessee can be treated as engaged in a priority industry for deduction under section 80-I of the Income-tax Act, 1961. 2. Whether the assessee's telecommunication equipment falls within the description of electronic communication equipment in the Sixth Schedule to the Income-tax Act, 1961. Analysis: 1. The primary issue in this case is whether the assessee qualifies as engaged in a priority industry for tax benefits under section 80-I of the Income-tax Act, 1961. The assessee, involved in manufacturing telecommunication equipment, was initially granted benefits by the Income-tax Officer as a priority industry. However, the Additional Commissioner of Income-tax invoked section 263 of the Act to reconsider this decision. The Additional Commissioner contended that telecommunication equipment did not fall within the priority industry definition. The Tribunal, relying on an opinion from the Technical Director of the Department of Electronics, Government of India, concluded that telecommunication equipment was indeed electronic communication equipment, falling within the Sixth Schedule's description. Consequently, the Tribunal set aside the Additional Commissioner's order, upholding the assessee's eligibility for benefits under section 80-I. 2. The second issue revolves around determining whether the assessee's telecommunication equipment qualifies as electronic communication equipment under the Sixth Schedule to the Income-tax Act, 1961. The Revenue, represented by Mr. Jetley, supported the Additional Commissioner's view that telecommunication equipment did not align with the Sixth Schedule's definition. However, the Court disagreed with this interpretation. The Court emphasized that a provision in a statute should be interpreted as it reads when clear, without resorting to external aids unless ambiguity exists. Since the Tribunal had already established that the assessee's product was electronic communication equipment, it was deemed to fall within the Sixth Schedule's description. The Court further clarified that an article can fall under multiple items in the Industries (Development and Regulation) Act, debunking the Revenue's assumption that an article can only fit into one category. Ultimately, the Court upheld the Tribunal's decision, ruling in favor of the assessee and directing the Revenue to pay the costs of the reference.
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