1978 (8) TMI 26 - HC - Income Tax

Summary

The High Court of Allahabad ruled in favor of M/S. Farrukhabad Electric Supply Company, a "Priority Industry," allowing a deduction of 8% of profits attributable to its activities. The Tribunal's decision was upheld, stating that the income from the sale of machinery is part of the assessee's business as a priority industry. The court referred to a previous case to support its interpretation of "attributable to." The question posed by the CIT was answered in favor of the assessee. No costs were awarded as the assessee did not appear in court.