2015 (11) TMI 495

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..... mbly submitted that the concept 'profits and gains' is a wider concept than the concept of 'income'. The profits and gains/loss are arrived at after making actual expenses incurred from the figure of sales by the Assessee. It does not include any depreciation and investment allowance, as admittedly these are not the expenses actually incurred by the Assessee. However, the term 'income' does take into consideration the deductions on account of depreciation and investment allowance. Therefore, the term profits and gains are not synonymous with the term 'income'. However, the High Court correctly felt that it was bound by the judgment of this Court. Motilal Pesticides (I) Pvt. Limited (Supra) is a Judgment of .....

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..... ors (Baroda) case followed the judgment of this Court in Cambay Electric Supply Industrial Co. Ltd. v. The Commissioner of Income Tax, Gujarat -II, Ahmedabad : (1978) 2 SCC 644 which decision concerned itself with Section 80 -E of the Income Tax Act. Section 80E reads as follows: - 80E - Deduction in respect of profits and gains from specified industries in the case of certain companies - (1) In the case of a company to which this section applies, where the total income (as computed in accordance with the other provisions of this Act) includes any profits and gains attributable to the business of generation or distribution of electricity or any other form of power or of construction, manufacture or production of any one or more of the art .....

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..... and gains" are different under the Income Tax Act. (See Section 80 -M read with Sections 80 -AA & AB, Section 80 -T which speak of "any income" and Section 28 which speaks of "income from profits and gains" showing thereby that conceptually the two expressions are understood as distinct in law). ( 5. ) IN paragraph 5 of the judgment in Motilal Pesticides (Supra), Shri Ramamurthi, learned senior counsel appearing for the Appellant submitted that both Cloth Traders and Distributors (Baroda) were cases which pertained to Section 80 -M only and this Court had no occasion to consider the application of Section 80 -AB with reference to Section 80 -HH of the Act. The Court in repelling this contention referred to another decision in H.H. Sir Ra .....

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