COMMISSIONER OF INCOME TAX Vs. AGGARWAL GUM INDUSTRIES

JUDGEMENT

(1.) HEARD learned counsel for the Revenue.

(2.) NO one has appeared for the respondents in spite of service.

(3.) PART D of Chapter IV deals with computation of total income derived from profits and gains of business of an assessee. Section 32A forms a scheme of provisions meant for computing the income from business or profession of an assessee under PART D of Chapter IV. Section 32A deals with deduction of amount of investment allowance to be made in computing the profits and gains of business. That, inter alia, also provides that for carry forward of unabsorbed investment allowance, if any, remaining after making deduction in any particular year to be set off against the profit and loss of subsequent year. Therefore, in order to compute profits and loss of income from an industrial undertaking to which Section 80HH applies, the provisions of PART D of Chapter IV has to be first taken into consideration and it is only after computing the income in accordance with the provisions contained in the Chapter that income from such industrial undertaking included in the gross total income of an assessee can be found out. Obviously, the Tribunal has not computed the income from industrial undertaking in accordance with the provisions of PART D of Chapter IV of the Income-tax Act before applying the provisions of Section 80HH. It may further be noticed that the entire income was claimed to be income from industrial undertaking to which Section 80HH applied.