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TMI Blog2006 (4) TMI 195X X X X Extracts X X X X X X X X Extracts X X X X ..... legal position, thus, emerging from the various authorities cited by us appears to be that if the owner of a building used for the purposes of the business of the owner, incurs any expenditure in the nature of current repairs , he is entitled to claim deduction of the same under the provisions of section 30(a)(ii) There is space to argue that even if the nature of repairs is such as not to be considered to be current repairs, viz., accumulated repairs etc., the assessee may claim deduction thereof under the provisions of general section 37(1) of the Act. However, under no circumstances an expenditure of capital nature incurred by the owner on the building premises used by him for the purpose of business can be allowed as deduction either under the provisions of section 30 or under the provisions of section 37(1) of the Act. In the case of expenditure incurred in respect of a building it cannot be said, if the expenditure is not entirely on repairs, that fixed capital has been left untouched. The argument that the assessee being already in business, such expenditure is incurred to facilitate carrying on of the business more efficiently and, therefore, should be treated to be revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 80-I interest income, miscellaneous income and short deposits should be taken into consideration or not - HELD THAT:- It is seen that the expression employed both under sections 80HHD and 80-I in this behalf is derived from . Hence following the judgments in CAMBAY ELECTRIC SUPPLY INDUSTRIAL CO. LIMITED VERSUS COMMISSIONER OF INCOME-TAX, GUJARAT II [ 1978 (4) TMI 1 - SUPREME COURT] , COMMISSIONER OF INCOME-TAX VERSUS COCHIN REFINERIES LIMITED [ 1981 (11) TMI 50 - KERALA HIGH COURT] and PANDIAN CHEMICALS LTD. VERSUS COMMISSIONER OF INCOME-TAX [ 2003 (4) TMI 3 - SUPREME COURT] , we reject such grounds of appeal of the assessee. Deletion of short deposits received from new occupants from the computation of income - HELD THAT:- It is seen that revenue s appeal in this behalf has been rejected by ITAT in its order dated 25-6-2001for assessment year 1991-92. Accordingly these grounds of appeal are rejected. While the appeals filed by the assessee are dismissed, the appeals filed by the revenue are partly allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... rints etc. started in the financial year 1990-91 and project as such was physically launched from financial year 1991-92. The Director's Report for the financial year 1991-92 gives the following details about the project:- "Renovation The Directors are happy to report that the renovation and refurbishment project of the hotel is proceeding as scheduled. The Directors have recognized the last changing trends in the needs of the business traveller and the up market tourist. The comprehensive renovation project of the entire property which has been taken up to meet these changed expectations of our desired clientele involves a complete upgradation/change in the interior decoration of the rooms, lobby, food and beverage outlets and all other public areas. After renovation your hotel should emerge as the No. 1 hotel in the country providing services and facilities of the highest international standards. It is anticipated that the total cost of the renovation project will be approximately Rs. 3,500 lakhs of which an expenditure of Rs. 1,158 lakhs has already been incurred up to31st March, 1992. The finances required for the renovation project are being met through internal accruals. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,07,000 as being in the nature of capital expenditure in addition to payment to M/s. GEL amounting to Rs. 23,18,695. The learned Assessing Officer found that expenditure of Rs. 168.91 lakhs claimed as deduction by the assessee on repairs to building was paid to M/s. Tirath Ram Ahuja (hereinafter referred to as "TRA") in accordance with the civil contract given to them for renovation of the building. For that purpose the controlling international organization of Hyatt brand name situate in Hong Kong issued broad drawings and specification and the same were later on modified and corrected by M/s. GEL. TRA was assigned the work to execute civil work of renovating the guest rooms, bath rooms and the guest corridor at the contracted price of Rs. 937.50 lakhs. The assessee treated this expenditure as revenue expenditure in the books of account. The learned Assessing Officer found that the expenditure was for providing and fixing granites of specified thickness, colour and quality in the floors as per drawings; fixing of wash basins and sanitary appliances, false ceiling, providing and fixing of masonry walls, wardrobes etc. The assessee argued that the advantage yielded by this expenditu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... object of renovation programme was not to maintain status quo, but to upgrade the profit yield. For that purpose the learned Assessing Officer relied upon the following extract from the Director's report:- "During the year under review, an average room occupancy of 68% was achieved (Last year 66%). Barring any further-unforeseen set backs, average occupancy is "expected to improve on completion of ongoing renovation/refurbishment project of the hotel. "The directors further report that renovated Regency Club has "already drawn an overwhelming response from up-market travellers." 6. On the basis of discussion as aforesaid, the learned Assessing Officer made a disallowance of Rs. 247.07 lakhs in relation to that part of Project expenditure which the assessee treated to be in the nature of revenue expenditure. 7. The learned CIT (Appeals) after going through certain case laws, as elaborated in the impugned order, adjudicated upon the assessee's claim of deduction as revenue expenditure of Rs. 247.07 lakhs in the following words:- "6.5 I now proceed to examine the facts of this case with reference to the principles discussed above. As mentioned earlier, the assessee has incurred e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncurred on improvement in the filtration, renewal of electric wiring and appliances, repair of the ducting for air-conditioners, provision of transformers for lights, replacement of A.C. grills, replacement of electrical and sanitary fittings, like flush valves etc. From the details of this expenditure it appears that on none of the items the expenditure incurred is for acquisition of a new asset or on the replacement of the whole or substantially the whole asset. It is also seen that in respect of number of items, the cost of each item like transformers, A.C. grills, flush valves etc. is less than Rs. 5,000 and as such the assessee would be entitled to full deduction i.e., 100% depreciation. The expenditure, therefore, is in the nature of current repairs and not on the capital field. However, there is one item of expenditure of Rs. 3,08,703 which has been incurred on the pressurization of the lift shafts. This expenditure has resulted in an additional benefit of enduring nature inasmuch as the safety of the lifts is enhanced for a considerable period of time which facility was not previously available. In my opinion, this expenditure has to be disallowed as of capital nature being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the accounts of the assessee and accordingly not claimed as deduction. The learned Assessing Officer held the opinion that the assessee should have capitalized expenditure to the tune of Rs. 3,64,11,478 also instead of debiting under the head 'Repairs and maintenance expenses'. He held the view that out of the revenue expenditure under the head 'Repairs and maintenance expenses' claimed by the assessee at Rs. 7,98,32,11,489, expenditure to the tune of Rs. 3,64,11,478 pertaining to Renovation and Refurbishing Project could not be allowed as normal repairs and maintenance expenditure or even an expenditure incurred on accumulated repairs and maintenance. Following the facts found during the course of assessment proceedings for assessment year 1992-93, the learned Assessing Officer held that this expenditure was part of all pervasive Renovation & Refurbishing of the hotel being carried out by the assessee spread over a number of years. He, therefore, made the disallowance of Rs. 3,64,11,478. The learned Assessing Officer made disallowance of Rs. 2,81,525 also being the amounts paid by the assessee to M/s. GEL and charged to profit & loss account. The learned Assessing Officer found th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 was part of Renovation and Refurbishment Project being carried out by the assessee spread over a number of years. Relying upon the detailed reasons given in the assessment order for assessment year 1992-93, the learned Assessing Officer held that expenditure to this extent did not relate to normal repairs and maintenance nor did it relate to accumulated repairs and maintenance. It was an integral part of renovation programme undertaken by the assessee with a view to give a total new look and enhance the standard of the hotel which would automatically result in higher rates of tariff and hence larger income generation. The learned Assessing Officer, therefore, made a disallowance of Rs. 3,48,92,811. In addition, the learned Assessing Officer disallowed the assessee's claim of deduction of a sum of Rs. 44 lakhs being payment made to M/s. GEL. On assessee's appeal the learned CIT (Appeals) following his findings in the earlier- years held that the Assessing Officer was not justified in disallowing the expenditure which was in the nature of replacement of old worn out items. The learned CIT (Appeals) held that the disallowance made by the learned Assessing Officer was required to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owed to agitate the same as income-tax is to be paid on the income which is to be assessed as per provisions of the Act." 14. Revenue filed Misc. Application being M.A. No. 293(Del.)/2003 dated 30-1-2003, inter alia, stating that there was a mistake apparent from record, inasmuch as the Tribunal held that only legal issues are involved in the additional grounds of appeal and the claim does not require investigation of facts on the part of the Assessing Officer. The revenue contended that it was not clear as to whether the amount was expended on some repairs or capital renovation or a separate structure was created and, therefore, factual investigation or enquiry of the case had become inevitable. The revenue contended that since the claim raised by the assessee by way of additional ground in this behalf required investigation of facts, the assessee was not entitled to raise it for the first time before the Tribunal. Thereupon the Bench comprising our predecessors by the order dated22-6-2004rejected the miscellaneous application filed by the revenue after observing that it had already been specifically held that the said grounds could be disposed off without any enquiry or investig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 992-93 before the Tribunal sought deduction of the entire expenditure on the ground that it was legally incorrect in not claiming deduction of the amounts earlier and that the matter can be adjudicated upon on the basis of the material already furnished to the Assessing Officer during the course of assessment proceedings. It is on this basis that additional ground of the assessee has been admitted by our predecessors for assessment year 1992-93. With a view to be consistent with that order we treat the assessee's additional grounds of appeal in this respect for assessment years 1993-94 and 1994-95 also as having been admitted. Needless to say that if any further facts not already on record are considered necessary for disposal of these additional grounds, the assessee's additional grounds are liable to be rejected for that reason alone. 18. During the course of hearing before us the learned counsel for the assessee argued that the assessee had been operating the hotel atNew Delhiby the trade name of Hyatt Regency from the time of Asian Games held inNew Delhiin 1984. The assessee's hotel was rated as Five-Star Deluxe by the Ministry of Tourism, Govt. of India. The assessee was requ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The mattresses get worn out or the foam gets foundry or lumpy. Some time they got badly stained on account of spilling of beverages and other items. In such cases replacement became necessary, otherwise also the life of a mattresses was about 4 to 5 years. Replacement of mattresses did not result into creation of a new asset. Doors of hotel rooms had electronic locks. Sometimes the guests lost the cards with holes/bar codes given to them for opening the rooms. There was always possibility of unscrupulous guests pretending loss of cards and attempt to use the same for unlawful entry into the room later on. The hotel had, therefore, to change the lock mechanism, etc. and on account of frequent changes in the lock mechanism the doors themselves were required to be replaced.Bathroom doors were also required to be replaced from time to time on account of deterioration because of splashing of water and steam. The life of picture tube of television sets in the hotel rooms was much shorter on account of different guests handling TV sets in the rooms. In the event of breakage or defects, the TV sets were required to be replaced. In the public areas such as restaurants, bars, lobby, recepti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter was that the lift was already there and by this expenditure the performance of the existing lift was improved. That did not result into creation of a new asset and, therefore, the learned CIT (Appeals) erred in treating it as expenditure of capital nature. For assessment years 1993-94 and 1994-95 the learned CIT (Appeals) sustained the disallowance of expenditure incurred by the assessee on the purchase of new furniture etc. for the mock up room. The assessee had already operated its five-star deluxe hotel for about 10 years. The colour scheme, furnishing, furniture, sanitary fittings and various other things had become worn out due to constant use and did not remain qualified for being used in a five-star deluxe hotel. The assessee, therefore, undertook a renovation and refurbishing programme of the hotel. Under this programme new fabrics and new carpets with fresh designs and colours, the new electricity fittings, the new design bath room fittings were chosen and fixed. The colour scheme of the room walls and polish on furniture was changed. The lay out of the furniture and fixture in the room was changed. New design of bed covers, curtains and furniture upholstery was cho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as capital expenditure. The assessee's claim of deduction was of only part of the expenditure after a careful consideration of the facts and circumstances of the case. There was no justification as to why the claim of deduction of the entire expenditure was not made before the Assessing Officer from the very beginning. The learned DR argued that it was not true that all facts relating to adjudication of assessee's claim were already on record. The fact of the matter was that apart from certain rudimentary information scattered here and there in the bunch of papers filed by the assessee during the course of assessment proceedings, there was scarcely any information of required quantity and quality so as to have a proper application of mind for deciding the assessee's claim of deduction. The learned DR argued that it was totally incorrect to say that what the assessee claimed before the Tribunal by way of additional ground of appeal was a pure question of law. Whether a particular expenditure is revenue or capital was essentially a question of fact to be determined on a comprehensive examination of the particulars of the expenditure. There was no clear cut legal formula or principle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tel. As the assessee catered to high spending clientele, the services and facilities being provided by the assessee in return had to be very expensive with quality being the main consideration. The learned counsel emphasized that by all these expenditures over the course of years, there was no enhancement of the earning capacity of the assessee. There was no increase at all in the total number of rooms and their areas remained the same. To our pointed question, the learned counsel replied that there was no change in the originally sanctioned building plan of the assessee's hotel. After completion of the renovation and refurbishment building area of the assessee remained the same. Based on these arguments, the learned counsel took us through broad particulars of the expenditure given in the paper book filed by the assessee. He referred to page 2 of the paper book for assessment year 1992-93, wherein a list of heads of items of expenditure has been given and classification either 'repair' or 'capital' mentioned against the items. He then took us through pages 159, 160 and 161 of the second paper book for assessment year 1992-93. The learned counsel argued that almost entire expenditu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... support of claim. For assessment year 1993-94 the paper book originally filed by the assessee comprises of 27 pages out of which 17 pages pertain to agreement with M/s. GEL and pages 5 and 6 relate to reserve and surplus and details of interest and miscellaneous income. After applying for additional ground of appeal, the assessee furnished second paper book comprising of 53 pages, out of which 37 pages are copies of bills received from TRA. For assessment year 1994-95 the assessee has originally filed a paper book comprising of 33 pages, out of which 17 pages relate to copy of agreement with M/s. GEL and pages 18 and 19 to some other matters. After filing the additional ground of appeal the assessee has filed paper book II comprising of 21 pages. 27. There is a specific provision, i.e., section 30 of Income-tax Act, 1961 that relates to deduction of expenditure on repairs. The provision draws a distinction as to the capacity in which an assessee incurs the expenditure - whether as a tenant or otherwise than as a tenant. If expenditure is incurred as a tenant, the entire expenditure incurred by the assessee on "repairs" is allowable deduction by virtue of the provisions of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture, as a permissible deduction under section 10(2)(v). What we have to consider is in what way has the Legislature circumscribed the expression 'repairs' and to what extent has the Legislature limited the right of the assessee to claim deduction in respect of repairs. One or two views are possible of the expression 'current'. It may be said that 'current' is used in contradistinction to heavy and that small petty repairs are the only repairs which can fall within the ambit of section 10(2)(v). The other view is a view more in fitting with the etymological meaning of the expression 'current', and it is that they are such repairs which are attended to when the need for them arises and are not allowed to fall into arrears or to be accumulated. If a building, machinery, plant or furniture needs some repairs and those repairs are attended to as and when the need arises then the repairs are current repairs. But if the assessee, although the need has arisen, does not attend to that need and allows the repairs to get accumulated, then it could not be said that when he is expending money on these repairs he is expending them on current repairs. Again, it seems to have been the intention o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... original condition when they have deteriorated as a result of wear and tear. But when the expenditure is incurred to bring into existence a new asset or an advantage of an enduring nature, it cannot be regarded as an expenditure incurred in current repairs." 30. In the case of Humayun Properties Ltd., the expenditure on the renovation of cinema halls was found to be not allowable under section 10(2)(v) on account of not being "current repairs". Subsequently in the case of CIT v. Kalyanji Mavji & Co. [1980] 122 ITR 49, the Hon'ble Supreme Court have held that from the expression "current repairs" employed in section 10(2)(v) it did not follow that the deduction of expenditure in respect of repairs, which are not current repairs, cannot be considered for deduction on general principles of section 10(2)(xv) [corresponding to section 37(1) of the new Act]. At the same time Hon'ble Supreme Court also held that the more serious question is whether the expenditure can be regarded as capital in nature, for if that be so, the benefit of section 10(2)(xv) [Now section 37(1)] must be denied. Thus, it follows that an expenditure that would exceed the general connotation of "repair" and would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on No. 3, therefore, is also answered in the affirmative and in favour of the Revenue." 32. From the various judgments cited in the foregoing paragraphs, the emergent legal position is that under the provisions of section 30(a)(ii) only such repairs as are attended to when the need arose can be allowed as deduction. There is divergence of opinion whether other repairs can be allowed as deduction under the general provisions of section 37(1) of the Act. In the case of New Shorrock Spg. & Mfg. Co. Ltd. v. CIT [1956] 30 ITR 338 Hon'ble Bombay High Court have clearly pronounced that the provision of section 10(2)(v) being a specific provision what cannot be allowed under that provision cannot be claimed as deduction under the general provisions of section 10(2)(xv). The aforesaid judgment of Hon'ble Bombay High Court has been approved by Hon'ble Supreme Court in the case of Ballimal Naval Kishore v. CIT [1997] 224 ITR 414. However, in the case of Kalyanji Mavji & Co., Hon'ble Supreme Court have held that expenditure on repairs other than current repairs can be allowed as deduction under the general provision of the Act but in that case Hon'ble Supreme Court have emphasized that there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness of exhibiting films in a theatre called Naval Talkies at Panipat. The assessee had been exhibiting films in the theatre from 1945 to 1960. During the period 1960 to March, 1961 the assessee extensively repaired the theatre. The amounts spent by him were on machinery Rs. 16,002, new furniture Rs. 27,889, sanitary fittings Rs. 5,225 and replacement of electrical wiring Rs. 13,604. In addition thereto, a total amount of Rs. 62,977 was spent on extensive repairs to walls, to the hall, to the flooring and roofing, to doors and windows and the stage sides etc. In assessment proceedings the assessee claimed that the expenditure thus incurred was in the nature of revenue expenditure as having been incurred on repairs. The learned Assessing Officer and the learned AAC held the expenditure to be of capital nature. However, the Tribunal upheld the assessee's case. On reference at the instance of the revenue, Hon'ble Bombay High Court, following the earlier decision in the case of New Shorrock Spg. & Mfg. Co. Ltd. answered the question in favour of the revenue and against the assessee. On assessee's appeal the Hon'ble Supreme Court have decided the matter in the following words:- "The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ga Sugar Co. Ltd. [1956] 29 ITR 21 and by the Madras High Court in CIT v. Sri Rama Sugar Mills Ltd. [1952] 21 ITR 191. In Liberty Cinema v. CIT [1964] 52 ITR 153 (Cal.), P.B. Mukharji, J., speaking for a Division Bench of the Calcutta High Court, held that an expenditure incurred with a view to bring into existence a new asset or an advantage of enduring nature cannot qualify for deduction under section 10(2)(v). In our opinion the test involved by Chagla, CJ., in New Shorrock Spg. & Mfg. Co. Ltd [1956] 30 ITR 338 (Bom.) is the most appropriate one having regard to the context in which the said expression occurs. It has also been followed by a majority of the High Courts inIndia. We respectfully accept and adopt the test. Applying the aforesaid test, if we look at the facts of this case, it will be evident that what the assessee did was not mere repairs but a total renovation of the theatre. New machinery, new furniture, new sanitary fittings and new electrical wiring were installed besides extensively repairing the structure of the building. By no stretch of imagination, can it be said that the said repairs qualify as 'current repairs' within the meaning of section 10(2)(v). It wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustries Ltd. v. CIT [2000] 241 ITR 9 Hon'ble Delhi High Court have held that there is no merit in the contention that whenever an expenditure is incurred in the course of the business it has to be revenue in nature. Section 37 itself postulates an expenditure incurred wholly and exclusively for the purpose of business could be of capital nature. We, therefore, reject the contention of the assessee based on the fact that the assessee was already in the business of running a deluxe hotel at the building premises. 36. In the instant case, the assessee has incurred expenditure by way of a long-term project carried over several years by way of Renovation and Refurbishment Project. For the purpose of conceptualising Renovation and Refurbishment activity to be undertaken and supervision thereof the assessee engaged the services of M/s. GEL, to whom alone the assessee has paid professional fees in the vicinity of about Rs. one crore. The total expenditure has been incurred over several years on Renovation & Refurbishment Project and has been in the vicinity of Rs. 35 crores-an amount that far surpassed the original cost to the assessee for bringing the hotel premises in existence prior to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hment Project between revenue and capital expenditure, the learned Assessing Officer has not accepted the assessee's contention. According to him no part of expenditure on Renovation & Refurbishment Project can be allowed as revenue expenditure. The learned CIT (Appeals) has by and large accepted the bifurcation of the assessee and granted the assessee substantial relief in respect of that part of expenditure on Renovation & Refurbishment Project that the assessee claimed should be allowed as revenue expenditure. 38. We take up the arguments of the assessee in support of the deduction claimed of amounts capitalized by the assessee himself in the books of account, because if the assessee's additional ground of appeal succeeds before us, there would be no reason as to why any disallowances made by the learned Assessing Officer in the assessment order should be sustained by us, either in the department's appeal or in the assessee's appeal. The main plank of the arguments of the assessee in this respect is that by all the expenditure incurred on Renovation and Refurbishment Project over the course of years, no additional advantage of capital nature was derived by the assessee. There w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tter of covered up area alone. It is also a question of quality of construction, building lay out, decor and ambience, and various functionalities. That is more so, in such businesses as a five-star hotel, hospital and nursing home, cinema theatre and so on. In such businesses it is not the size of the building that alone matters. The assessee has vehemently argued before us that by all this expenditure not a single room was added. The assessee has conveniently omitted to mention the advantage secured by the assessee in terms of higher room tariff and higher rate of room occupancy. No comparative details in this behalf have been relied upon by the assessee so as to prove that there is no significant improvement in the profit-making structure of the assessee by this expenditure. It is needless to mention here that where an expenditure is incurred in relation to profit-making structure itself, as distinct from profit of the business and the expenditure is on fixed capital assets, such as building, machinery and plant, furniture, that expenditure would be a classic illustration of a capital expenditure. We, therefore, have no hesitation in rejecting the assessee's additional grounds o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee only in respect of replacement of old items by new items. He, therefore, held that none of these expenses could be considered to be in the capital field. While arriving at these findings the learned CIT (Appeals) either failed to notice or otherwise overlooked the fact that the assessee had already claimed and been allowed huge expenditure in relation to normal repairs and replacements in each year under appeal. The expenditure booked under the head "Renovation and Refurbishment Project" was conceptually different expenditure. The expenditure was undertaken with a view that "The hotel should emerge as No. 1 hotel in the country". The renovation expenditure in the initial year was estimated at Rs.35 crores and fee to the professional advisors alone exceeds the sum of Rs. one crore. The items of expenditure claimed by the assessee and allowed by the learned CIT (Appeals) by way of revenue expenditure are not independent items of repairs, replacements and renewals, but an integral part of the overall design of "New Hyatt". Apparently, the learned CIT (Appeals) has not looked at this expenditure in proper perspective. The courts inIndiahave construed repairs and renewals as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee has in its appeals for assessment years 1991-92 to 1994-95 claimed that foreign exchange receipts by the hotel at its money changing counter should be considered eligible for deduction under section 80HHD. It is seen that the similar issue has arisen in the assessee's own case for earlier assessment year and the Income-tax Appellate Tribunal, Delhi have by its order in Asian Hotels Ltd. v. Dy. CIT [2002] 81 ITD 127 (TM) rejected the assessee's contention. Respectfully following the same, we reject the assessee's grounds of appeal in this behalf in the appeals before us. 43. For assessment years 1991-92, 1992-93 and 1994-95, the assessee has claimed that for the purpose of computation of deduction under sections 80HHD and 80-I interest income, miscellaneous income and short deposits should be taken into consideration. It is seen that the expression employed both under sections 80HHD and 80-I in this behalf is "derived from". Hence following the judgments in Cambay Electric Supply Industrial Co. Ltd. v. CIT [1978] 113 ITR 84 (SC), CIT v. Cochin Refineries Ltd. [1982] 135 ITR 278 (Ker.) and Pandian Chemicals Ltd. v. CIT [2003] 262 ITR 278 (SC), we reject such grounds of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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