9911796707
TMI Blog2011 (2) TMI 1095X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal while allowing the aforestated claim has not erred in placing reliance on the criteria for allowance of deduction under section 80HH when the claim of the assessee was under section 80HHA ?" 2. The assessment year is 1989-90, and the relevant accounting period is October 23, 1987 to March 31, 1989 (17 months). The Income-tax Officer, upon going through the statement of income and the audit report filed along with the return of income, observed that the assessee-firm had claimed deduction under section 80HHA of the Act at the rate of 20 per cent. on the gross total income of Rs. 7,69,942 at Rs. 1,53,988. The Incometax Officer took note of the fact that the assessee-firm owned salt works at Kandla which was a part of the grea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... newly established small scale industrial undertakings in certain areas". Sub-section (1) thereof, as it stood at the relevant time, provided that where the gross total income of an assessee includes any profits and gains derived from a small scale industrial undertaking to which the section applies, there shall, in accordance with and subject to the provisions of the section, be allowed, in computing the total income of the assessee, a deduction from such profits and gains of an amount equal to twenty per cent. thereof. The section applies to any smallscale industrial undertaking which fulfils the condition enumerated under sub-section (2) thereof. The condition laid down by virtue of clause (i) of sub-section (2) is that it begins to manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge of development (including the extent of, and scope for urbanisation of the area) and other relevant considerations, by a notification in the Official Gazette specified the areas shown in column (3) of the Schedule thereto and falling outside the local limits of the municipality or cantonment board, as the case may be, shown in the corresponding entry in column (2) thereof, for the purposes of the said provisions of the Act. The Schedule under the said notification in so far as the same is relevant for the present purpose reads thus : Sl. No. Name of municipality or -cantonment board Details of the area 4 Any other municipality or cantonment board Areas up to a distance of 8 kilometres in all directions from the municipal limits, or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... municipal limits of Gandhidham, it is not possible to record any finding to that effect. In the circumstances, it is not possible to state that the Tribunal has committed any legal error so as to warrant interference. 8. In the light of the aforesaid discussion, question No. 1 is answered in the affirmative, that is, against the Revenue and in favour of the assessee. The Appellate Tribunal was right in law and on facts in confirming the order passed by the Commissioner of Income-tax allowing the claim of the assessee under section 80HHA. 9. As regards the second question, the same does not arise out of the order of the Tribunal inasmuch as the Tribunal has not placed reliance on the criteria for allowance of deduction under section 80HH ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
