2005 (9) TMI 274

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....ections 80HH and 80-I of the Income-tax Act, 1961 in respect of power generation? 2. Whether in the facts and circumstances of the case, assessee did comply with the conditions contained under sections 80HH and 80-I in relation to the employment of the requisite number of employees? 3. Whether in the facts and circumstances of the case the provision of section 80AB was properly appreciated in regard to the consideration of income generated during the previous year from the wind mill for quantifying the deduction under sections 80HH and 80-I of the Act? 3. We have heard the rival submissions in the light of material placed before us and precedents relied upon. Assessee claimed deduction under section 80HH on wind mill amounting to Rs. 3....

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....ringing into existence new goods by a process which may or may not amount to manufacture. It also takes in all the by-products, intermediate products and residual products which emerge in the course of manufacture of goods. The next word to be considered is "articles" occurring in the said clause. This word is not defined in the Act. It must, therefore, be understood in its normal connotation - the sense in which it is understood in the commercial world. It is equally well to keep in mind the context, since a word takes its colour from its context. The word "articles" is preceded by the words "it has begun or begins to manufacture or produce". Can we say that the word "articles" in the said clause comprehends and takes in its ambit power ge....

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....of the General Clauses Act, 1897 movable property of every description except immovable property. The term 'property' is nomen generalissimum (a term of the most general meaning). The term 'property' signifies proprietary rights in rem possesses as singular variety of different applications having different degrees of generality. In the case of Ferens v. O'Brien 11 Q.B.D.21 it was held that electricity cannot be classed as goods for the purposes of the Sale of Goods Act. Similar view was taken in the case of County of Durham Electric Power Co. v. Commissioners of Inland Revenue 2K.B. 604; Eric County Fuel Co. v. Carroll A.C. 105; Read v. Croydon 4 A.E.R. 631. CST v. M.P. Ele. Board, AIR 1970 SC 732 and Rash Behari Shaw v....

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....isite number of workers. In fact, the assessee did not employ any worker. The assessee only shared the cost of employees with Pandian Chemicals and another concern, Metal Powder Co. Ltd. As such it is abundantly clear that the assessee did not satisfy the condition as regards the requisite number of workers. 10. Coming now to the last issue we find that law is clear. The Hon'ble Supreme Court has laid down in the case of Motilal Pesticides (I.) (P.) Ltd. v. CIT [2000] 243 ITR 26 that special deduction is to be allowed only on net income and not on gross income. 11. Adverting to the objection of the learned counsel for the assessee that deduction was allowed in the initial year of assessment, therefore, it cannot be withdrawn in later ....