9911796707
TMI Blog2002 (10) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... l Co. Ltd. v. CIT, has been reiterated by the Supreme Court in its later ruling in the case of CIT v. Sterling Foods which reversed the decision of the Karnataka High Court (Sterling Foods v. CIT . The question referred to us is, therefore, answered in favour of the Revenue and against the assessee. - - - - - Dated:- 7-10-2002 - Judge(s) : R. JAYASIMHA BABU., K. RAVIRAJA PANDIAN. JUDGMENT The judgment of the court was delivered by R. JAYASIMHA BABU J. -The question referred to us, at the instance of the Revenue, for our consideration is, "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in holding that the cash assistance, duty drawback and air subsidy should be treated as in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the benefits received by the assessee by way of cash assistance, duty drawback and import entitlements were benefits derived under a scheme formulated by the Government of India and not from the operation of the industrial undertaking, that the industrial undertaking was capable of being operated without the aid of all these incentives and that the incentives were extended to that undertaking by the Government only as a matter of policy. The scheme framed by the Government providing for those benefits constituted the immediate source for the benefits that the assessee realised. Though the assessee's right to receive those benefits under those schemes was attributable to the fact that it was running the industrial undertaking, that however d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng that the scope of the term "derived from" in section 80HH is narrower than the term "attributable to" and that the benefits accruing to the assessee under the schemes formulated by the Government to reward the location of the industry in a backward area or for having effected exports are benefits which accrued to the assessee under the relevant schemes of the Government, which constitute the immediate source for those benefits and, therefore, such benefits are not to be regarded as having been derived from the industrial undertaking. It is always open to Parliament to prescribe conditions subject to which deductions or rebates from tax can be claimed. The fact that a benefit is given to an assessee, which runs an industrial undertaking ..... X X X X Extracts X X X X X X X X Extracts X X X X
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