2003 (4) TMI 3

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....hould be treated as income derived by the industrial under taking for the purpose of section 80HH?" 2. The court followed its earlier decision in CIT v. Pandian Chemicals Ltd. [1998] 233 ITR 497 (Mad) and answered the question in favour of the Department and against the assessee. 3. The appellant preferred two special leave petitions; the first from the decision in CIT v. Pandian Chemicals Ltd. [1998] 233 ITR 497 (Mad), being SLP (C) No....CC 3017 of 2000 and the second being the present appeal. As far as the first matter was concerned the special leave petition was dismissed on the ground of delay. The question of law was left open. We have therefore to consider whether, on the merits, the decision of the High Court in adopting the reaso....

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....d to give a restricted meaning in the manner suggested by the learned Solicitor-General, it has used the expression 'derived from', as, for instance, in section 80J. In our view, since the expression of wider import, namely, 'attributable to', has been used, the Legislature intended to cover receipts from sources other than the actual conduct of the business of generation and distribution of electricity." 6. The word "derived" has been construed as far back in 1948 by the Privy Council in CIT v. Raja Bahadur Kamakhaya Narayan Singh [1948] 16 ITR 325 when it said: "The word 'derived' is not a term of art. Its use in the definition indeed demands an enquiry into the genealogy of the product. But the enquiry should s....