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TMI Blog1977 (4) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... Madras-1, the question that has been referred to this court is as follows : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the assessee-company was entitled to the deduction of Rs. 19,419 from its total income under section 80E of the Income-tax Act, 1961, for the assessment year 1967-68 ? " The assessee is a company engag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acture of prodorite, the total income finally computed by the Income-tax Officer was Rs. 77,308. The Income-tax Officer accepted that the assessee was entitled to a deduction under section 80E in respect of the profits from the manufacturing business in prodorite. He, however, worked out the deduction due under the provisions at 8 per cent. of Rs. 77,308 being the net total income. This amount cam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and observed in doing so as follows : " The language of section 80E speaks of a deduction at 8 per cent. of any profits and gains attributable to the business of the priority industry and not 8 per cent. of the total income or of the business income. No doubt the relief is admissible when the total income of the company includes such profits. But it does not mean that the profits are to be reduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omputing the total income of the company. (Underlining ours). The section uses the expression " such profits and gains " which shows that the profits and gains of the particular industry specified in the Fifth Schedule are to be taken into account for the purpose of arriving at the percentage of deduction spoken of in section 80E. This aspect of the construction of this provision is covered by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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