9911796707
TMI Blog1982 (9) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... reproduced here as they involve a minor issue.] 3. The assessee is a registered firm working under the name and style of Chamba Mineral Co. The business of the assessee is extraction of slates from the various quarries as mentioned by the ITO in his impugned order dated 20-2-1978. During the course of the assessment proceedings, the assessee had made a claim that it is entitled to deduction in r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -4-1974 by insertion of section 9 in the Direct Taxes (Amendment) Act, 1974. It provides deduction in respect of profits and gains from newly established industrial undertaking or hotel business in backward areas. Sub-section (10) of this section, however, contains a prohibition for such allowance and this prohibition is in relation to any undertaking engaged in mining. The real issue, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the earth from which mineral substances are taken whereas a quarry is open excavation usually for obtaining building stone, slate or limestone, etc. The word 'mining' means the process of business of working mines whereas the word 'quarrying' is an act of extracting stone, marble, slate or limestone, etc. There is further distinction brought out by the learned Commissioner (Appeals) between the w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidered view on the reasons given above, the learned Commissioner (Appeals) was fully justified in coming to the conclusion that the assessee was not engaged in mining and, therefore, there was no prohibition of allowing deduction to the assessee under section 80HH in respect of profits and gains from newly established industrial undertaking. It is not in dispute that the industrial undertaking is ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
