Rajasthan High Court denies deduction under Income-tax Act for failing to qualify as industrial undertaking

The High Court of Rajasthan ruled in favor of the Revenue against the assessee, denying the deduction under section 35B(1A) of the Income-tax Act, 1961. The court held that the assessee-firm did not qualify as an industrial undertaking eligible for the deduction, citing similarities with a prior case involving Dhandia Gems Corporation. The court concluded that the assessee did not substantiate that the goods were manufactured by a small-scale industrial undertaking, leading to the disallowance of the deduction.

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The High Court of Rajasthan ruled in favor of the Revenue against the assessee in a case involving deduction under section 35B(1A) of the Income-tax Act, 1961. The Tribunal held that the assessee-firm is not an industrial undertaking eligible for the deduction. The decision was based on findings similar to a previous case involving Dhandia Gems Corporation. The court found that the assessee failed to prove that the goods produced were from a small-scale industrial undertaking, therefore disallowing the deduction.

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