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TMI Blog1978 (2) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 obtained by the assessee during the relevant previous year by the sale of chemicals imported by it on the strength of licences issued to it, based on its export performance of leather, both manufactured and purchased by it, was rightly held as not attributable to the manufacturing activity carried on by it ?" The question has to be answered with reference to section 104(4)(a) and the Explanati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not less than fifty-one per cent. of such total income." The assessee is engaged in the manufacture of leather. The assessee also purchases leather. Both the manufactured leather and the purchased leather are exported As a result of such export, the assessee has been granted import entitlement. Chemicals were imported and sold by the assessee. Such imports and sales by the assessee resulted in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come for the relevant previous year is not less than fifty-one per cent. of such total income." The question is whether the business consists mainly of the manufacture of goods as in sub-section (4)(a) of section 104 as has been explained by the statutory explanation. "Attributable" is not a word which denotes that there should be a sufficient nexus between the manufacturing process and the resu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntion is not well-founded. In the light of the above, we answer the question referred to us in the affirmative, i.e., in favour of the Revenue and against the assessee. The Revenue will be entitled to its costs including counsel's fee Rs. 500. A copy of this judgment under the signature of the Registrar and the seal of this court will be sent to the Income-tax Appellate Tribunal, Madras Bench. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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