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TMI Blog2011 (8) TMI 659X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal dismissing its appeal by holding that the assessee is not eligible for deduction under Section 80-IA of the Act. 2. The assessee is a Private Limited Company carrying on the business of manufacture and supply of M.S. Wires and G.I. Wires. For the relevant assessment year 1996-97, the assessee filed its return of income which included the income derived as net commission to an extent of Rs. 26,12,576/-. The assessee accordingly claimed the deduction under Section 80-IA towards the said amount. The Assessing Officer disallowed the claim on the ground that the assessee has earned the commission as an agent to supply certain goods and hence, this cannot be the activity of the assessee. Aggrieved by the same, the assessee preferred a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the authorities committed an error in misreading and misapplying Section 80-IA of the Act. That the assessee is entitled for the deductions claimed. 5. The learned Counsel appearing for the revenue defends the impugned order. He contends that the provisions of Section 80-IA have, been rightly interpreted and does not call for any interference by this Court. That the facts and circumstances of the case would disclose that the provisions are not applicable to the instant case. He placed reliance on the judgments in the case of CIT v. Siddaganga Oil Extractions (P.) Ltd. [1993] 201 ITR 968/67 Taxman 426 (Kar.), in the case of Cambay Electric Supply Industrial Co. Ltd., v. CIT [1978] 113 ITR 84 (SC) and the case of Liberty India v. CIT [200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activity of the assessee. Hence, the said judgment is of no avail to the assessee. 10. The expression "profit or gain derived from any business of an industrial undertaking" will not stand attracted to the case of the assessee. The commission earned by the assessee cannot be considered as a "profit or gain from any business of an industrial undertaking". It is not the business of the industrial undertaking to earn commission. Therefore, in the facts and circumstances of the case, we are of the considered view that the order of the Tribunal is justified. Further, we are of the considered view that in view of the facts and circumstances of the present case, the Tribunal was justified in holding that the assessee is not entitled for deductio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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