COMMISSIONER OF INCOME TAX Vs. BHARATH SEA FOODS

JUDGEMENT

(1.) THE Revenue is the applicant in all these IT reference cases with the assessee(s) figuring as respondent(s). We are concerned with the asst. yr. 197879 in IT Ref. 123 of 1986, 1977-78 in IT Ref. 169 of 1986, asst. yrs. 1974-75 and 1975-76 in IT Ref. Nos. 3 and 4 of 1987. THE assessee- company is engaged in the business of catching, purchasing, processing and exporting fish and selling the same. THE assessee- company put forward a plea that it is entitled to claim deduction under s. 80J and 80HH of the IT Act, 1961 (for short 'the Act'). THE ITO negatived the said plea. In appeal, the AAC upheld the pleas of the assessee(s). In second appeal, the Tribunal concurred with the CIT(A) by placing reliance on the decision of the Special Bench of the Tribunal in the case of Poyllakada Fisheries (P) Ltd. vide order dt. 12th June, 1985 in ITA No. 35 (Coch) 1982 wherein the Tribunal had held in similar circumstances that the assessee therein was entitled to relief under s. 80J of the Act with reference to the capital employed in the undertaking as a whole. Following the reasoning in the said order, the Tribunal confirmed the order of the CIT(A) and dismissed the appeal preferred by the Revenue. THEreafter, the Revenue filed reference applications before the Tribunal under s. 256(1) of the Act requiring the Tribunal to refer to this Court for its opinion, the question of law set out therein. THE Tribunal, thereupon referred the question of law to this Court. THE common question raised in IT Ref. 123 and 169 of 1986 is as follows: "Whether the assessee- company which is engaged in the business of catching, purchasing, processing and exporting fish is entitled to claim deduction under s. 80J of the Act."

(2.) THE common question raised in IT Ref. Nos. 3 and 4 of 1987 and IT Ref. No. 100 of 1995 reads as follows:

(3.) THE Calcutta High Court had occasion to consider an identical question in CIT vs . Union Carbide India Ltd., [1987]165ITR550(Cal) , and CIT vs . Union Carbide India Ltd., (1993) 203 M 301 (Cal) . In, [1987]165ITR550(Cal) , the facts are as follows: