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TMI Blog2012 (6) TMI 467X X X X Extracts X X X X X X X X Extracts X X X X ..... ecided in favor of revenue. - 1 of 2010 - - - Dated:- 18-8-2010 - ADARSH KUMAR GOEL, AJAY KUMAR MITTAL, JJ. JUDGMENT Ajay Kumar Mittal J.- 1. In pursuance of a direction issued by this court under section 256(2) of the Income-tax Act, 1961 (in short "the Act"), the following question of law has been referred to this court for its opinion by the Income-tax Appellate Tribunal, Delhi Bench "C", New Delhi (here- inafter referred to as "the Tribunal") : "Whether, in the facts and in the circumstances of the assessee's case, the Tribunal has erred in law while not accepting claim under section 80-I although the assessee fulfilled all the requisite conditions of being an industrial undertaking ?" 2. The facts, in brief, are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 80-I of the Act and entitled to deduction thereunder. 5. Learned counsel for the assessee submitted that the assessee was enti- tled to deduction under section 80-I of the Act in view of the judgments in Aspinwall and Co. Ltd. v. CIT [2001] 251 ITR 323 (SC), CIT v. U. P. State Agro Industrial Corporation [1991] 188 ITR 370 (All), CIT v. Penwalt India Ltd. [1992] 196 ITR 813 (Bom), CIT v. Talwar Khuller (P.) Ltd. [1999] 235 ITR 70 (All), CIT v. Prithviraj Bhoorchand [2006] 280 ITR 94 (Guj), CIT v. Prabhudas Kishordas Tobacco Products P. Ltd. [2006] 282 ITR 568 (Guj), CIT v. Taj Fire Works Industries [2007] 288 ITR 92 (Mad) and CIT v. Liberty Group Marketing Division [2009] 315 ITR 125 (P H). 6. Learned counsel for the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0HH of the Act. The assessee had earned income by sale of the import entitlements. It was held that it would not constitute profit and gains derived from its industrial undertaking of processing sea food and the assessee was not entitled to the benefit of section 80HH of the Act. The Division Bench of this court in Nahar Exports Ltd. v. CIT [2007] 288 ITR 494 following the aforesaid judgment of the apex court, while dealing with the expression "derived from", had recorded as under (page 497) : "The word 'derive' is usually followed by the word 'from' and it means : 'get, to trace from a source ; arise from, originate in, show the origin or formation of'. The source of import entitlements could not be said to be the industrial undertakin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ritatively stands resolved against the assessee. 12. Suffice it to notice that the judgments cited by learned counsel for the assessee were either prior in point of time to the judgment delivered by the apex court in Sterling Foods' case [1999] 237 ITR 579 wherein the scope of the expression "derived from" was elaborated and discussed or the apex court judgment in Sterling Foods' case [1999] 237 ITR 579 was not under consideration in those judgments. Therefore, the assessee cannot derive any advantage from those pronouncements. 13. Accordingly, the question of law, referred to above, is answered in favour of the Revenue and against the assessee. 14. The reference stands disposed of accordingly. - - TaxTMI - TMITax - Income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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