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TMI Blog2014 (11) TMI 512X X X X Extracts X X X X X X X X Extracts X X X X ..... t - the income derived from after sale services rendered by a hatchery to the poultry farmers, who purchase the chicks from them cannot at all be treated as heterogeneous or unconnected to that of the sale proceeds of the chicks – the order of the Tribunal is upheld – Decided against revenue. - I.T.T.A. Nos. 211 & 242 of 2003 - - - Dated:- 15-10-2014 - L. Narasimha Reddy And Challa Kodanda Ram,JJ. For the Appellant : Sri S. R. Ashok For the Respondent : Sri Y. Ratnakar JUDGMENT (Per LNR,J) These two appeals are preferred by the Revenue, feeling aggrieved by the orders passed by the Hyderbad Bench of the Income Tax Appellate Tribunal in I.T.A.Nos.1951 1952/Hyd/96, referable to assessment years 1993-94 and 1994-9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ondent filed appeal against the said order. Following his own order pertaining to the previous assessment year, the Commissioner allowed the appeal. That resulted in filing of I.T.T.A.No.1952/Hyd/97, by the Department. Through its common order, dated 28.10.2002, the Tribunal dismissed both the appeals. Hence, these two further appeals under Section 260-A of the Act. Sri S.R.AShok, learned senior Standing Counsel for the appellant submits that the provision, as it stood then, enabled an assessee to deduct one-third of the profits and gains derived from the business of poultry farming and the income derived from the after sale services cannot form part of the same. He submits that the Parliament has employed the word derived from with a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... qualifies for extension of the benefit under Section 80JJ of the Act. The provision, as it stood then, reads as under: Deduction in respect of profits and gains from business of poultry farming: 80JJ. Where the gross total income of an assessee includes any profits and gains derived from business of poultry farming, there shall allowed, in computing the total income of the assessee, a deduction from such profits and gains of an amount equal to thirty-three and one-third percent thereof. The respondent is a hatchery. By creating special circumstances and through scientific means, eggs are hatched in matter of hours and the resultant chicks are packed in a special manner, when they are just one day old and supplied to the poultry f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espondent. The same reasoning weighed with the Tribunal and both the appeals were dismissed. Heavy reliance is placed upon the judgment of the Supreme Court in Pandian Chemicals Ltd s case (1 supra). The activity undertaken by the assessee in that case was manufacture of chemicals and it qualified for deduction provided for under Section 80HH of the Act. The assessee sought to add to the profits and gains, the interest that was paid by the electricity supply undertaking on the deposits made by it for guaranteed supply of power. The Honble Supreme Court took the view that the income of that nature does not at all fall into the one, referable to Section 80HH of the Act. Further, their Lordships referred to the following passage from the ju ..... X X X X Extracts X X X X X X X X Extracts X X X X
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