TaxTMI 
TaxTMI 
2011 (11) TMI 130
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....re common, the same are being taken up for hearing together. Learned counsel for the assessee fairly pointed out that most of the questions of law, such as in respect of cash compensatory allowance, trading profits, interest incomes, rental incomes and property income stand decided against the assessee in ITA No.46/Chandi/2002 therefore, the assessee has sought the decision of this Court only on the following question of law:- "Whether on the facts and in the circumstances of the case, the learned Income Tax Appellate Tribunal was justified in holding that the assessee was not entitled to deduction under Sections 80-I and 80-HHC of the Income Tax Act, 1961 in respect of income from dry cleaning charges?" The br....
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....is entitled to deductions under Section 80-I of the Act. Since the said activity is in the process of export activity as well, therefore, the assessee is entitled to deduction under Section 80-HCC as well. Though the learned Tribunal has referred to the decision of the Tribunal in the assessee's own case for the year 1988-89 and 1989-90 but it is asserted by learned counsel for the assessee that the question of dry cleaning charges, as an income derived from industrial undertaking, was not the issue raised and decided. Similarly, in four other cases, i.e., in ITA No.2251/Chandi/92, assessment year 1991-92, Greatways, No.599/Chandi/94, assessment year 1991-92, Eastman and No.1601/Chandi/93, assessment year 1990-91, Nav Bharat Knitwears a....
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....hat by clause (baa) to the explanation to Section 80-HCC "profits of business" has been introduced by the Finance Act No.2 of 1991, its income received from dry cleaning process is also an income in the export business of the assessee, therefore, liable to be taken into consideration for the grant of the benefit under Section 80-HCC. But we do not find any merit in the said argument. The effect of clause (baa) to the explanation to Section 80-HCC was considered by a Division Bench of this Court in ITA No.180 of 2002, decided on 3.2.2011, Commissioner of Income Tax v. Hansa Agencies Pvt. Ltd., ITA No.180 of 2002. It was held that the interest income earned from surplus finance which was for earning interest falling under the head &....
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....rks, (1993) 199 ITR 679 wherein the question which arose was whether the process of dyeing, furnishing, singeing would fall within the ambit of manufacturing or production of textiles as envisaged by Entry 23 of Schedule I of the Industries (Development and Regulations) Act, 1951. It was found that bleaching, dyeing and printing of grey cloth amounts to manufacture or production of an article or thing within the meaning of Section 32 of the said Act. Learned counsel for the assessee also placed reliance upon a recent judgment of the Hon'ble Supreme Court in (2010) 320 ITR 665 (SC), Commissioner of Income Tax, Mumbai v. Emptee Poly-Yarn (P) Ltd., wherein it was held that twisting and texturising of partially oriented yarn (POY) constitut....
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....ined as an income derived from an industrial undertaking. It is, thus, argued that process of dry cleaning is not a process falling in the first degree which may be considered for claiming deduction under Section 80-I of the Act. Keeping in view the aforesaid pronouncements in the present appeals, the assessee claimed dry cleaning receipt of Rs. 36,074/- as income derived from business income. While discussing the said claim, the Tribunal stated to the following effect:- "16.2 ... We are unable to accept the submission of the learned counsel for the assessee that profits and gains from the industrial undertaking would also cover and include the trading profits, interest income, property income, rental income and income b....