1999 (12) TMI 5

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..... of estimate of earned interest at the rate of 12 percent, on bank fixed deposits of Rs. 70 lakhs existing in the name of the beneficiaries? - (4) Whether the Appellate Tribunal is right in law and on facts in deleting the addition of Rs. 6,49,726 made on account of interest on deposits amount to Rs. 1.70 crores made by the assessee-trust with Norma Detergent Pvt. Ltd., and on behalf of the beneficiaries? - (5) Whether the Appellate Tribunal is right in law and on facts in allowing the deduction under section 80-I of the Act - we find that there is no merit in the appeal, and the appeal stands dismissed.
Judge(s) : B. C. PATEL., K. M. MEHTA. JUDGMENT The present appeal is preferred by the Assistant Commissioner of Income tax, Central C .....

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..... deposits amount to Rs. 1.70 crores made by the assessee-trust with Norma Detergent Pvt. Ltd., and on behalf of the beneficiaries? (5) Whether the Appellate Tribunal is right in law and on facts in allowing the deduction under section 80-I of the Act on the following items of income treating it as income of industrial undertakings: Rs. (i) Job work receipt of: 1,67,000 (ii) Sale of empty soda ash bardana of: 41,93,709 (iii) Sale of empty barrels of: 4,38,542 (iv) Sale of plastic waste of: 12,83,785." So far as question No. 1 is concerned, the same is covered by the decision of this court in the case of CIT v. Deepak Family Trust (No.1) [1995] 211 ITR 575. Hence, no substantial question of law arises, and question No. 1 need not be r .....

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..... itted that the Commissioner of Income-tax (Appeals) and the Tribunal have rightly come to the conclusion that the items covered by question No. 5 are covered by section 80-I of the Act inasmuch as the amount received can be said to have been received from the activities undertaken by the assessee. He submitted that no question of law is raised, more particularly, when a Division Bench of this court in Income-tax Application No. 70 of 1997 (CIT v. Norma Detergent P. Ltd.) had considered a similar question and held that "it was, however, found that the items of kasar and sale of empty soda ash bardans, are directly connected with the manufacturing activities of the asses see and should be allowed". It is required to be noted that if the asses .....

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