9911796707
TMI Blog1993 (8) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income-tax Act, 1961, and pertains to the interpretation of section 80HH of the said Act. The assessee is a private limited company and it carries on the business of manufacture and sale of pesticides. The assessment years involved in this case are 1979-80 and 1980-81. The assessee claimed relief under section 80HH in respect of its liquid section which had been newly set up in a backward are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e following question to this court: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee was not entitled to deduction under section 80HH of the Income-tax Act, 1961, on the gross profit of Rs. 34,30,035 (liquid section) but on the net income therefrom, for the assessment year 1979-80?" The contention of learned counsel for the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... surance Co. Ltd. [1979] 119 ITR 660 (Bom). In all these cases the High Courts had followed the decision of the Supreme Court in the case of Cloth Traders' [1979] 118 ITR 243 and come to the conclusion that deduction was to be granted on the basis of gross income and not on the net income. It is not necessary to discuss or consider the aforesaid decisions in any great detail for the simple reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the cases of Cambay Electric Supply Industrial Co. Ltd. [1978] 113 ITR 84 (SC), and Distributors (Baroda) [1985] 155 ITR 120 (SC), while dealing with the claim for deduction under section 80K of the said Act. The provisions of sections 80M, 80K and 80HH, with which we are concerned in the present case, are more or less identical. Section 80HH has to be read along with the provisions of section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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