S.C : Whether, on facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee, being not an industrial undertaking, it is not entitled to deduction under s. 80-I of the IT Act, 1961 ?

Supreme Court Of India

Indian Poultry vs. CIT

Sections 80HH & 80-I

S.P. Bharucha, N. Santosh Hegde & Y.K. Sabharwal, JJ.

Civil Appeal No. 7584 of 1997

22nd February, 2001

ORDER

BY THE COURT

The three questions which the High Court answered against the assessee read thus : “(i) Whether, on facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee, being not an industrial undertaking, it is not entitled to deduction under s. 80-I of the IT Act, 1961 ? (ii) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee is not entitled to deduction under s. 80HH and 80-I of the IT Act, 1961, as an industrial undertaking ? (iii) Whether, on facts and in the circumstances of the case, the Tribunal was right in law in not following the decision of Hon’ble Andhra Pradesh High Court in the case of CIT vs. Venkateshwara Hatchery (P) Ltd. (1988) 71 CTR (AP) 80 : (1988) 174 ITR 231 (AP) : TC 25R.705 which was favourable to the assessee, particularly when there was no decision of jurisdictional High Court on the point at issue?”

It is not in dispute that the case is covered against the assessee by the judgment of this Court in CIT vs. Venkateshwara Hatcheries (P) Ltd. (1999) 153 CTR (SC) 105 : (1999) 237 ITR 174 (SC). The further point that was made by the assessee was that it not only reared the chicken but also dressed them for sale in the market and, therefore, a process of manufacture was carried out. But, it appears that there was no material laid before the Tribunal in this behalf. It is, therefore, not possible to conclude in the present matter that the dressing of poultry is tantamount to manufacture.

The appeal is dismissed. No order as to costs.

[Citation : 250 ITR 664]

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