2006 (3) TMI 85

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....ndertaking for the purpose of deduction under section 80J of the Income-tax Act, 1961?" The facts, as revealed from the record of the case, are that the assessee started business from July 31, 1978, after acquisition of trawlers and it carried on operation for two months. During the year ending on September 30, 1978, which would be relevant for the year 1979-80, the assessee was catching fish in the high seas and selling it. On September 30,1979, it commissioned freezing and cold storage plant and also started export of fish and fish products after processing the caught fish. The claim of the assessee for relief under section 80J of the Income-tax Act, 1961 (for short "the Act"), for the first two years was denied, but the same was partl....

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....Act?" Section 80J(4)(iii) of the Act lays down as follows: "it manufactures or produces articles, or operates one or more cold storage plant or plants, in any part of India, and has begun or begins to manufacture or produce articles or to operate such plant or plants, at any time within the period of thirty-three years next following the 1st day of April, 1948, or such further period as the Central Government may, by notification in the Official Gazette, specify with reference to any particular industrial undertaking." Therefore, the prerequisite for an undertaking to be an industrial undertaking in terms of section 80J(4) of the Act is that it should manufacture or produce articles. The record of the case shows that, at best in th....

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....ing the shrimps bags in the chemical water and thoroughly washing. 8. Storing bags in the chilled tanks as per variety and the temperature maintained is about four degrees C. 9. Removing the shrimps bags very often and changing water in chilled tanks. 10. Some bags will be stored in fish hold where temperature is about 18 degrees C. First bags will be put in front of blower and first bring down the temperature and they will be stored after sometime in various corners of fish hole i.e., to allow other freshly caught prawns to be kept in front of blowers." By no stretch of imagination, these activities would constitute manufacturing of a product, which would be a new product, than the fish as commonly understood. The matter appear....