Processing of fish products treated as production of an article, securing section 80J relief and defeating reference

Processing and freezing prawns and similar fish products was treated as production of an article, so the business qualified as an industrial undertaking for deduction under section 80J of the Income-tax Act, 1961. The same reasoning previously applied under section 80HH was followed, and the binding earlier decision covered the issue. As a result, the assessee was entitled to section 80J relief, and no referable question of law survived for reference under section 256(2).

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Issues: Whether the assessee's activity of processing and freezing fish amounted to production of an article so as to qualify as an industrial undertaking for deduction under section 80J of the Income-tax Act, 1961, and whether any referable question of law arose under section 256(2) of the Income-tax Act, 1961.

Analysis: The activity of processing prawns and similar fish products was treated as production of an article, and the business was regarded as an industrial undertaking on the same reasoning earlier applied under section 80HH of the Income-tax Act, 1961. Since the issue was already covered by the binding decision of the Court, no referable question of law survived for reference under section 256(2).

Conclusion: The assessee was entitled to the benefit of section 80J, and the Revenue's request for reference was rejected as no question of law arose.

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