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TMI Blog1985 (12) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 80J of the Incometax Act ? 2. Whether, on the facts and in the circumstances of the case and on an interpretation of section 80J, the relief could be restricted proportionately for nine months? " R. A. No. 7/Coch/1979: " Whether, on the facts and in the circumstances of the case, the plant and machinery used for extracting oil by the solvent extraction process from oil cakes qualify for development rebate at a higher rate ? " R. A. No. 8/Coch/1979 : " Whether, on the facts and in the circumstances of the case, the assessee is entitled to claim section 80HH deduction at 20% of the current year's income of the industrial undertaking without setting off against it the earlier years' losses, unabsorbed depreciation and una ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. We do so. Question No. 1 in R. A. No. 9/Coch/1979 has to be answered, in the light of the decision of the Supreme Court in Lohia Machines Ltd. v. Union of India [1985] 152 ITR 308 (SC), in the negative, that is, in favour of the Revenue and against the assessee. We do so. Question No. 2 in R. A. No. 9/Coch/ 1979 has to be read without the word " losses " appearing after the words " earlier years ". The question as to losses does not arise from the order of the Tribunal. The question when so read has to be answered, in the light of the decision of the Supreme Court in Distributors (Baroda) P. Ltd. v. Union of India [1985] 155 ITR 120 (SC), in the negative, that is, in favour of the Revenue and against the assessee. We do so. The questio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry has to be read literally, and, when so read, it can only be understood to be confined exclusively to extraction of oil directly from seed by the solvent extraction process. Any other method of extraction of oil will not come within the scope of the entry. Counsel for the assessee, Shri V. Rama Shenoi, referring to the available literature on the subject, submits that it is not possible for the assessee to use its machinery for extraction of oil directly from seeds by the solvent extraction process. Such extraction, he says, is totally unknown in Indian industry. What is done in this country is to extract oil from oil cakes, which are themselves produced out of seeds. Although the seeds are the ultimate source of oil, the immediate sour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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