Deductions under sections 80HH and 80J in the case of forest lessees-Regarding - Income Tax - 329/1982

Deductions under sections 80HH and 80J in the case of forest lessees-Regarding Circular No. 329 Dated 22/2/1982 To All Commissioners of Income-tax. Sir, Subject: Deductions under sections 80HH and 80J in the case of forest lessees-Regarding. A reference was made to the Board as the whether undertakings engaged in extraction of timber and other forest produce by leasing out forests would be entitled to deductions under sections 80HH and 80J of the Income-tax Act, 1961. 2. The matter was constidered by the Board in consultation with the Ministry of Law which had given an opinion (copy enclosed) that the answer to the question posed would depend on the nature of the activity of the forest lessees; however, if the process involved is not merrely conversion of standing trees into fire-wood but also manufacture of new saleable commodities, the benefit of deduction under section 80J and 80HH would be available. 3. These insturctions may please be brought to the notice of all officers working in your charge. Yours faithfully, (Sd.) V.B. Srinivasan Secretary, Central Board of Direct Taxes.