COMMISSIONER OF INCOME TAX Vs. HARSHWARDHAN CHEMICALS

JUDGEMENT

(1.) : On an application under s. 256(1) of the IT Act, 1961, Tribunal has referred the following question for the opinion of this Court :

(2.) THE assessee is a public limited company. engaged in the business of manufacturing and selling single superphosphate (SSP) fertilizers.

(3.) WHEN there is no dispute that the part of the income, on which the deduction under ss. 80HH and 80-I has been denied relates to the income other than the income from industrial activities of the assessee, in our view, Tribunal has committed error in allowing deduction on the subsidy amount, which has been claimed on showing bogus enhanced purchase and sales by the assessee. AO as well as CIT(A) were justified in denying deduction under ss. 80HH and 80-I on such income, which has nothing to do with the industrial activities.