2004 (11) TMI 58

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.... "12-7-2000': Shri R.L. Jain, L.C. for the appellant. Heard. The appeal is dismissed. (R.D. Vyas J. Shambhoo Singh J.)" The appellant, i.e., the Revenue, therefore, filed a special leave to appeal to the Supreme Court being S.L.P.(C.) No. 3417 of 2001. Their Lordships of the Supreme Court by order dated May 9, 2001, granted leave and passed an order in C.A. No. 3769 of 2001 whereby the appeal filed by the Revenue was allowed. Their Lordships then formulated the substantial question of law arising out of the order passed by the Tribunal and remanded the case to this court for deciding the appeal on the merits. This is what their Lordships held: "Special leave granted. Heard the learned Attorney General. In our opinion,....

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.... the assessment years 1993-94 and 1994-95, the assessee claimed that they received a sum of Rs. 57,83,675 from their supplier of raw material as also from their customer by way of liquidated damages. According to the assessee they in the course of the business activity had entered into contracts for purchase of raw material with their raw material supplier as also for sale of their finished products with their customers/purchasers. It was contended that due to non-performance of these contracts by their supplier and purchasers, the assessee received the aforementioned sum as liquidated damages from defaulting supplier and purchasers pursuant to term in every individual contract. According to the assessee, this amount being in the nature of ....

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....on of law framed by the Supreme Court. Heard Shri R.L. Jain, learned senior counsel with Ku. V. Mandlik, learned counsel for the Revenue, and Shri G.M. Chafekar, learned senior counsel with Shri D.S. Kale, learned counsel for the assessee. Having heard learned counsel for the parties and having perused the record of the case, we are inclined to allow the appeal and set aside the order of the Tribunal. The question that really arises for consideration in this appeal is, what is meaning of the words "any profits and gains derived from an industrial undertaking" used in sections 80HH and 80-I ibid? The words "derived from" were the subject-matter of judicial interpretation. It was held that the expression "derived from" has a definite bu....