FENNER INDIA LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE following questions have been referred to us by the Tribunal at the instance of the applicant under Section 256(1) of the Income-tax Act, 1961 :

(2.) THE assessee is a domestic company in which the public are substantially interested. THE assessee-company is carrying on business in the manufacture and sale of V belts, oil seals, 0 rings and rubber moulded products, etc. THE assessee claimed relief under Section 80HH of the Income-tax Act and also with regard to the interest paid under Section 220(2) of the Act. THE Income-tax Officer negatived the relief sought for by the assessee. THE Commissioner of Income-tax had taken the view that the cash assistance received from the Government by the assessee cannot be regarded as part of the income derived from the industrial undertaking. THE Income-tax Appellate Tribunal had also rejected the relief sought for by the assessee, thus dismissing the appeal. Hence, the reference had arisen at the instance of the assessee.

(3.) AS per that section, the above income is chargeable to income-tax under the head "Profits and gains of business or profession".