Section 80HHA deduction turns on whether a circular qualifies as a notified order under section 11B.

Deduction under section 80HHA depended on whether the industrial unit qualified as a small-scale industrial undertaking under the amended statutory linkage to section 11B of the Industries (Development and Regulation) Act, 1951. Any clarification issued through a notified order under section 11B could affect the deduction claim, but the material before the Court was not enough to decide whether the circular or press note relied on met that requirement. The matter was remitted to the Tribunal to determine that question, and the deduction would follow if the answer was in the affirmative.

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Issues: Whether the assessee was entitled to deduction under section 80HHA of the Income-tax Act, 1961, and whether the circular / press note relied on for determining the value of plant and machinery could be treated as a notified order under section 11B of the Industries (Development and Regulation) Act, 1951.

Analysis: The availability of deduction under section 80HHA depended on whether the industrial unit satisfied the statutory test of being a small-scale industrial undertaking. The amended provision linked the expression to the status recognised under section 11B of the Industries (Development and Regulation) Act, 1951. On that footing, any clarification issued in terms of a notified order under section 11B would be relevant to the deduction claim. However, the material placed before the Court was insufficient to determine conclusively whether the circular referred to by the Tribunal answered that description.

Conclusion: The issue was not finally decided on merits; the matter was remitted to the Tribunal to determine whether the circular was covered by section 11B of the Industries (Development and Regulation) Act, 1951, and the deduction would stand if that finding was returned in the affirmative.

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