9911796707
TMI Blog1979 (7) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... to relief under section 80J of the Income-tax Act, 1961, for the assessment year 1970-71 ? " The assessee is an incorporated company and the case relates to the first year of assessment. It returned an income of Rs. 47,726 and claimed exemptions under sections 80-I and 80J of the Act. The exemptions claimed were disallowed by the ITO. The AAC allowed the exemption claimed under s. 80J, but refused that claimed under s. 80-I. The department filed an appeal before the Tribunal, which was followed by a cross-objection by the assessee. The Tribunal held that the assessee was not entitled to relief under s. 80J, but allowed exemption under s. 80-I. The controversy in the present reference is as to whether the assessee was entitled to relief un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any profits and gains derived from an industrial undertaking ......... there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction from such profits and gains ...... (4) This section applies to any industrial undertaking which fulfils all the following conditions, namely :--... (iii) it manufactures or produces articles, or operates one or more cold storage plant or plants, in any part of India, and has begun, or begins to manufacture or produce articles or to operate such plant or plants, at any time within the period of thirty-three years next following the 1st day of April, 1948, or such further period as the Central Government may, by notificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of these sections, processed seed must be treated as falling either in the category of manufacture or production. It is not necessary for the purposes of this case to decide whether the processing of seeds as done by the assessee will amount to manufacture or production of an article, for the assessee would be entitled to exemption in either case. Reference may now be made to s. 80B of the Act as it then stood. Section 80B(7) defined priority industry in the following terms: " (7) ' priority industry ' means the business of generation or distribution of electricity or any other form of power or of construction, manufacture or production of any one or more of the articles or things specified in the list in the Sixth Schedule or the busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch finds place at item 28 thereof. Processed seed is thus treated as an article, which is obtained by the process of manufacture or production for purposes of this section too. Considering the fact that s. 33, and the Fifth Schedule, s. 80B, and the Sixth Schedule treat processed seeds as an article obtained by the process of manufacture or production, it will be safe to infer that the legislature did not exclude processed seed from the category of manufactured or produced article for purposes of section 80J. It is also worth remembering that sections 80B and 80-I which grant relief to specified industries including those which sell processed seeds occur in Chap. VIA of the Act along with s. 80J. This being so, interpretative uniformity sup ..... X X X X Extracts X X X X X X X X Extracts X X X X
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