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TMI Blog2008 (1) TMI 423X X X X Extracts X X X X X X X X Extracts X X X X ..... doubt, the definition of 'book' is very wide but the 'Yellow Pages' will within the definition of 'other Publication' of a similar nature by whatever name called as provided in section 80Q on which deduction is not available. The Yellow Pages basically consist of classified advertisements giving nature of product, address and telephone number of the advertiser. The matter to be printed in the Yellow Page is at the discretion of the advertiser, that is, whether it is to be printed in box or in large print or it has to be highlighted or it has to be printed with illustrations. In other words, the advertisements given in the Yellow Pages are not materially different from newspapers classified advertisements. The only difference is that Yellow Pages is in a bound form and is indexed whereas a newspaper is not indexed. In fact, it is seen from the publication itself that Yellow Pages is registered with the Registrar of Newspapers in India. Moreover, it is distributed free. Therefore, one of the essential characteristics of a book, that is, its cost, is missing in this case." Secondly, he was of the view that Tata Yellow Pages published by the assessee does not fall within the intende ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he was of the view that Tata Yellow Pages falls within the extracted categories of books specified in section 80Q(3) by observing as under:- "After careful consideration of all the aspects involved, I am of the view that excluded category of books in section 80Q(3) is characterised by one common attribute which is that this category enumerates such publications which are not 'authored' as such. The category so excluded indicates the imparting of information either through collection and dissemination of news and events of through advertisements. The sources of such publication are of diverse nature with conspicuous absentee, namely, an author or authors." Lastly, it was observed as under: "It will also be relevant to take into account the manifest legislative intent as exhibited in the speech of the Finance Minister and Explanatory Memorandum, the simultaneous revival of section 80Q on the one hand and section 80QQA on the other, the common characteristics running through all the species of the excluded category of 'books' leads me to the conclusion that the 'book' that is published by the assessee is not envisaged to be of such nature which entitles conferment of section 80Q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee on account of advertisements and, therefore, the profit derived by the assessee was not on account of publication of book but it related directly to the advertisements given by their clients in Yellow Pages. (e) Yellow Pages is not freely available for sale or distribution at any book shop or book stall and, therefore, neither it can be described as book nor it can be said that the assessee has published a book. In support of his observations, the learned CIT(A) relied on the following decisions: 1. New India Fisheries Ltd. v. P.M. Mehra, ITO [1971] 82 ITR 765 (Bom.). 2. Pron Magnate (P.) Ltd. v. CIT [1996] 219 ITR 138 (AP). 3. Chola Fish Farms (P.) Ltd. v. CIT [1996] 217 ITR 609 (Mad.). 4. Laxmi Feeds Exports Ltd. v. Asstt. CIT [1997] 62 ITD 315 (Mum.). 5. IAC v. Ramanathapuram District Co-op. Printing Works Ltd. [1992] 42 ITD 415 (Mad.). In view of the above, the learned CIT(A) upheld the orders of the Assessing Officer for both the years. Aggrieved by the same, the assessee is in appeal before the Tribunal. 4. The learned counsel for the assessee, Mr. Sonde, has vehemently assailed the orders of learned CIT(A) as well as Assessing Officer by making various ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interpreting the scope of section 80Q; (vii) that any word used in the statute would include singular as well as plural and, therefore, the claim of the assessee cannot be rejected merely on the ground that only one book is published by the assessee. It is irrelevant whether one book is published or more than one book is published. What is to be seen is the business of publication. If the assessee is engaged continuously throughout the year and year after year in the business of publication of book then the claim of the assessee cannot be disallowed; (viii) that all the decisions referred to by the learned CIT(A) are distinguishable on facts. On the other hand, the learned D.R. has strongly supported the orders of the Assessing Officer and learned CIT(A). Since, we have already narrated the reasonings given by the Assessing Officer and the learned CIT(A) in detail, the same need not be repeated here. 5. Rival submissions of the parties have been considered carefully. The question for our consideration is whether assessee can be said to be engaged in the business of printing and publication of books or publication of books so as to claim deduction under section 80Q of the Act. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mounts to publication; (c) whether 'Yellow Pages' can be classified under the excluded category mentioned in sub-section (3) of section 80Q; and (d) whether profit earned by assessee can be said to be derived from the publication of books. 7. At the outset, it may be mentioned that if the language of the statute is clear and unambiguous, then its natural meaning should be applied and the Courts are not required to ascertain the intention of the Legislature in such cases. Reliance can be placed on the following observations of the Hon'ble Supreme Court in the case of Keshavji Ravji Co. v. CIT [1990] 183 ITR 1:- "As long as there is no ambiguity in the statutory language, resort to any interpretative process to unfold the legislative intent becomes impermissible. The supposed intention of the Legislature cannot then be appealed to whittle down the statutory language which is otherwise unambiguous. If the intendment is not in the words, it is nowhere else. The need for interpretation arises when the words used in the statute are, on their own terms, ambivalent and do 110t manifest the intention of the Legislature." 8. The dispute before us relates to the meaning of the wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilar issue arose in the case of Scientific Engg. House (P.) Ltd. v. CIT [1986] 157 ITR 86. In that case, the assessee acquired documentation service comprised of drawings, designs, plans, processing data etc. and claimed depreciation thereon. The question before the Apex Court was whether such documentation amounted to 'books'. Their Lordships referred to the dictionary meaning given in Webster's New World Dictionary (already quoted above) and came to the conclusion that the same amounted to 'books' and consequently, the assessee was entitled to depreciation. 9. The above discussion clearly shows that the word 'book' is a word of widest amplitude and as per its natural meaning, would include not only literary or scientific book, book of art, law or religion etc., but also include mere collection of sheets. Thus, it would include even the exercise books used by the students for writing, books of account like cash book, ledger, registers etc. used by the businessmen for writing their accounts of business. Therefore, it would be wrong to contend that 'book' would include only literary work or other work authored by someone. The decision of the Tribunal in the case of Ramanathapuram ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... print a book as a guide for tourists. This may consist of various information collected by it which may be useful for the tourists. It may be without any author but that does not mean that the publishing house has not published it. A telephone directory issued by Mahanagar Telephone Nigam Ltd. (MTNL) to their subscribers would be considered as a book published by MTNL. Merely because it is distributed free, it does not mean that it is not a case of publication of book. Such book is also not available at book stalls but on that account, it would be wrong to say that such book was not published. Charging of price, in our opinion, is not the condition precedent for bringing the book within the scope of the word 'Publication'. All the factors taken into consideration by the lower authorities in denying the claim of the assessee, in our opinion, are irrelevant. The purpose of publication is to make the contents of the book known to the public either by way of sale or distribution of the same to the public. 'Yellow Pages' are printed in lakhs and the same are distributed free to the general public i.e., Corporate houses, Government offices, Businessmen and Professionals as well as to re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that there is a common thread amongst the excluded items i.e., there is no author in respect of excluded items. We are unable to accept this reasoning also. In all the newspapers, all the news are authored by their correspondents. In all the magazines and journals, the articles published are written by authors. Therefore, it is difficult to hold that there is no author in the excluded items. Accordingly, the learned CIT(A) was not justified in holding that 'Yellow Pages' fell within the expression 'other publication of similar nature' used in excluded category in sub-section (3) of section 80Q. It is also not the stand of either Assessing Officer or learned CIT(A) that case of assessee falls under any other excluded items. No other reasoning has been given either by Assessing Officer or by the learned CIT(A) to hold that the expression "other publication of similar nature" would include the 'Yellow Pages' published by the assessee. Consequently, the 'Yellow Pages' cannot be included in the excluded category specified in sub-section (3) of section 80Q of the Act. 15. The last aspect of the issue is whether it can be said the profit earned by the assessee was from the business of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act were initiated. In response to the same, it was submitted on behalf of the assessee that the sale of newspapers and income from advertisements in the newspapers were inseparable and both of them had to be considered for working of the profits from these two units. This submission was rejected by the learned CIT. Aggrieved by the same, the appeal was filed before the Tribunal. One of the grounds raised before the Tribunal was as under: "(iii) Without prejudice to the ground (2), the Commissioner erred in failing to consider the argument of the appellant that the revenue of the said printing presses could not be computed merely on the basis of the revenue on sale of the newspapers, but the revenue received on account of sale of space for advertisements carried in the said newspapers and the revenue derived on sale of waste newspapers had also to be taken into account." After considering the submissions from both the sides, the Tribunal vide order dated 30-11-2004 (ITA No. 3215/M/01), allowed the claim of the assessee by observing as under: "We have considered the rival submissions and perused the materials on record and have gone through the various judgments cited bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 4-6-2007. It is clear from the above decision that revenue from advertisements cannot be ignored while computing the profits derived from the industrial undertaking. For the similar reasons, we are of the view that income generated from advertisements cannot be ignored and will have to be taken into consideration while computing the income derived from the business of publication of books. 17. In view of the above discussion, it is held that assessee was engaged in the business of publication of books in terms of the provisions of section 80Q of the Act and consequently, the assessee was entitled to deduction under the aforesaid section. The orders of the learned CIT(A) are, therefore, set aside and consequently, the Assessing Officer is directed to allow the deduction under section 80Q of the Act. 18. Now we take up departmental appeal. First issue relates to the disallowance under section 43B in respect of contribution to Provident Fund and Family Pension Fund. The Assessing Officer disallowed the claim of the assessee on the ground that payments were made beyond the due date specified in the respective enactments. However, the learned CIT(A) found that payments were mad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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