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TMI Blog1994 (11) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... w in holding that the business of fishing with the trawler was an industrial undertaking, eligible for deduction under section 80J of the Income-tax Act, 1961 ?" The assessee-company carries on the business of catching, buying and selling fish. For the purpose of fishing, it used a trawler. In respect of this trawler, the assessee claimed relief under section 80J of the Income-tax Act, 1961 ("the Act"), on the ground, inter alia, that the trawler used by it for the purpose of fishing was a "ship". The alternate ground was that the business of catching fish and selling them after processing amounts to manufacture or production of articles by an industrial undertaking. The Income-tax Officer rejected the claim of the assessee for relief unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "ship". It is this question which was decided in favour of the Revenue. According to him, the question whether the activity of catching fish and selling the same amounts to manufacture or production of articles by an industrial undertaking within the meaning of section 80J of the Act was not a point at issue before this court in the above case. He, therefore, contended that this aspect of the controversy deserves careful consideration and requires determination. Reliance was placed in support of this contention on the decision of the Kerala High Court in Cochin Co. v. CIT [1978] 114 ITR 822. We have carefully considered the rival submissions and perused the decision of this court in New India Fisheries Ltd. v. P. M. Mehra, ITO [1971] 82 I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ishing. Section 80J of the Act grants certain reliefs to industrial undertakings, ships and hotels falling thereunder in respect of the profits and gains derived by them on fulfilment of the conditions set out therein. One of the conditions applicable in the case of an industrial undertaking is that it manufactures or produces articles. The question that fell for determination in all such cases where relief is claimed by an industrial undertaking under this Act is: Whether it manufactures or produces articles. The admitted position in this case is that the assessee carries on the business of catching fish in the deep seas with the aid of a trawler and sells the same. The question that arises is: whether "catching fish" amounts to "manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The question was whether the assessee who was engaged in the processing of fish for export could be held to be an "industrial company" within the meaning of section 2(7)(a) of the Finance Act. The High Court held that the assessee being engaged in the "processing of fish" satisfied the requirement and, hence, it was an industrial company. That is not the position in the present case. Here, for getting relief under section 80J, the assessee should "manufacture or produce articles". The benefit of this section is not available to those undertakings which are engaged in "processing of goods or articles" not amounting to manufacture or production. Obviously, in the instant case, the assessee does not manufacture or produce articles. He is, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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