2004 (8) TMI 68

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....nces of the case, the learned Income-tax Appellate Tribunal was right in giving deduction under section 80-I amounting to Rs. 1,50,733 received as compensation from insurance company against loss of raw material in fire? 2. Whether, on the facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal was right in deleting the addition made by the Assessing Officer being 1/6th of car maintenance and depreciation amounting to Rs 12,763 and Rs. 17,241, respectively?" During the relevant year, the assessee received an amount of Rs. 1,50,733 towards insurance claim on account of loss of raw material in fire. The assessee included the said amount in profits and claimed deduction under section 80-I of the Act. The Assessi....

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....e Income-tax Act, 1961, must be understood as something which has direct or immediate nexus with the appellant's industrial undertaking. Although electricity may be required for the purposes of the industrial undertaking, the deposit required for its supply is a step removed from the business of the industrial undertaking. The derivation of profits on the deposit made with Electricity Board cannot be said to flow directly from the industrial undertaking itself." Similarly, in Sterling Foods [1999] 237 ITR 579 (SC), the question was whether income derived by the assessee by sale of import entitlements was profit and gain "derived from" its industrial undertaking of processing sea food. Answering the question in favour of the Revenue, the ap....