FLENDER LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE appeal is directed against a judgment and order dated 29th August, 2003 passed by the learned Tribunal rejecting the contentions of the assessee. The assessee has come up in appeal. As regards the business activities of the assessee, the Assessing Officer in his assessment order has found as follows:

(2.) THE learned Tribunal, agreeing with the views expressed by the CIT (A) and relying on the judgment in the case of CIT vs. Parry Agro Industries Ltd., reported in : 257 ITR 41 [Ker.], upheld the views of the CIT(A) and added that in arriving at the admissible deduction under Section 80HHE the Assessing Officer has also to take into account the negative profit arising out of the business of gear box. The questions in the circumstance, which arise for determination, are as follows:

(3.) MR . Bajoria submitted that it is altogether erroneous to proceed on the basis that the sections operate in the same field or are intended to cover the same activity. Therefore, the ratio of the judgments arising out of any interpretation of Section 80HHC cannot be applied to any question arising out of Section 80HHE.