1983 (8) TMI 22

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....as delivered by BHARUCHA J.-In this reference under s. 256(1) of the I.T. Act, 1961, a question is referred to this court at the instance of the Revenue. The question is this : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee was entitled to deduction under s. 80-I of the Income-tax Act, 1961, for the assessment years 1968-....

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....s: "80B. (7) 'priority industry' means the business of generation or distribution of electricity or any other form of power or of construction, manufacture or production of any one or more of the articles or things specified in the list in the Sixth Schedule or the business of any hotel where such business is carried on by an Indian company and the hotel is for the time being approved in this b....

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....at year for reconditioning machinery which was originally manufactured and sold by it. The Tribunal, therefore, directed that the aggregate amount thereof should be considered as profit for the purpose of giving relief under s. 80-I. For the assessment year 1969-70, however, since no similar certificate had been produced, the Tribunal apportioned, as it had done in its earlier order, profits from ....

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....al Radiators P. Ltd. [1981] 128 ITR 531, a Division Bench of the Madras High Court considered the decision in Cambay Electric Supply Industrial Co. Ltd. v. CIT [1978] 113 ITR 84 (SC), and said that the observations therein had to be understood in the sense that s. 80-I envisaged relief being granted in all cases where there was some direct nexus between the income and the priority industry. Again,....