1998 (2) TMI 64

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....he question referred to us at the instance of the Revenue in respect of the assessee's assessment for the assessment year 1976-77 is as to whether on the facts and in the circumstances, the Appellate Tribunal was correct in holding that the assessee-company was entitled to the relief under section 80HH in respect of its business which also comprised of business activities other than manufacturing ....

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....tivities is uncalled for. That view of the Tribunal has been called into question by the Revenue. Section 80HH(1) which is relied on reads as under : "Deduction in respect of profits and gains from newly established industrial undertakings or hotel business in backward areas.-(1) Where the gross total income of an assessee includes any profits and gains derived from an industrial undertak....

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....be engaged in before it can be regarded as industrial undertaking for the purpose of this section. Section 80HH(2)(i) mandates that the assessee who claims benefit of this section should have begun "manufacture" or "production" of articles after December 31, 1970, in any backward area. Though the term "industrial undertaking" is capable of wider definition, and the word "industry" has a very la....