Pandian Chemicals Ltd. v. CIT

262 ITR 278Supreme Court of India2003#217 most cited

What is Pandian Chemicals Ltd. v. CIT authority for?

Income eligible for deduction under Section 80IA or 80IC must have a direct nexus with the eligible business activity of the industrial undertaking. Income merely incidental to the business, even if part of the assessee's overall business, is not considered "derived from" the eligible undertaking.

353

judgments rely on this decision, according to BharatTax’s citation analysis of 367,154 Indian tax judgments — from 2007 to 2026.

Also referred to as

Pandian Chemicals Ltd. v. CIT · 262 ITR 278 · Section 80IA deduction · Section 80IC deduction · income derived from · direct nexus · incidental income · eligible business activity · profits derived from industrial undertaking · statutory interpretation

Also reported as

129 Taxmann 539

Sections most often in play

Section 1961Section 143(3)Section 250Section 148Section 115JBSection 147Section 14ASection 263

Issues it is cited on

section 274(2)casus omissussection 80hinitial assessment yearsection 80hheligible businesssection 144badeduction under section 80iasection 80hhcsection 144asection 158bcsection 80ib

Judgments citing Pandian Chemicals Ltd. v. CIT

M/S Sjvn Ltd. ( Formerly Satluj Jal Vidyut Nigam Limited), Shimla vs. DCIT, Circle, Shimla

ITA 835/CHANDI/2018[2014-15]Status: DisposedITAT Chandigarh28 Mar 2019AY 2014-15
For Appellant: Shri Rajiv Sood, CAFor Respondent: Smt.Mona Mohanti, CIT DR
Section 250(6)

…the judgment of the Madras High Court, with which we respectfully agree, no substantial question of law arises for our consideration. 6. Learned counsel for the revenue relied upon another judgment of Madras High Court in Pandian Chemicals Ltd. v. C/T [2002] 254 ITR 562 /[2003] 128 Taxman 126 (Mad.). But in the said judgment, a finding was recorded that there is no detail in respect of scraps, gunny bags for which assessee has claimed deduction. The judgment in Fenner India's case (supra) is applicable to the facts of the present case and not the one in Pandian A.Ys.2013-14 & 2014-15 Chemicals' case. In view t…

M/S Sjvn Ltd. ( Formerly Satluj Jal Vidyut Nigam Limited), Shimla vs. DCIT, Circle, Shimla

ITA 834/CHANDI/2018[2013-14]Status: DisposedITAT Chandigarh28 Mar 2019AY 2013-14
For Appellant: Shri Rajiv Sood, CAFor Respondent: Smt.Mona Mohanti, CIT DR
Section 250(6)

…the judgment of the Madras High Court, with which we respectfully agree, no substantial question of law arises for our consideration. 6. Learned counsel for the revenue relied upon another judgment of Madras High Court in Pandian Chemicals Ltd. v. C/T [2002] 254 ITR 562 /[2003] 128 Taxman 126 (Mad.). But in the said judgment, a finding was recorded that there is no detail in respect of scraps, gunny bags for which assessee has claimed deduction. The judgment in Fenner India's case (supra) is applicable to the facts of the present case and not the one in Pandian A.Ys.2013-14 & 2014-15 Chemicals' case. In view t…

ACIT, Circle, Shimla vs. M/S Satluj Jal Vidyut Nigam Limited, Shimla

ITA 827/CHANDI/2018[2014-15]Status: DisposedITAT Chandigarh28 Mar 2019AY 2014-15
For Appellant: Shri Rajiv Sood, CAFor Respondent: Smt.Mona Mohanti, CIT DR
Section 250(6)

…the judgment of the Madras High Court, with which we respectfully agree, no substantial question of law arises for our consideration. 6. Learned counsel for the revenue relied upon another judgment of Madras High Court in Pandian Chemicals Ltd. v. C/T [2002] 254 ITR 562 /[2003] 128 Taxman 126 (Mad.). But in the said judgment, a finding was recorded that there is no detail in respect of scraps, gunny bags for which assessee has claimed deduction. The judgment in Fenner India's case (supra) is applicable to the facts of the present case and not the one in Pandian A.Ys.2013-14 & 2014-15 Chemicals' case. In view t…

M/S. Thdc India Ltd., Uttrakhand vs. ACIT, Haridwar

In the result, the appeals filed by the Revenue as well as the appeals filed by

ITA 1560/DEL/2015[2011-12]Status: DisposedITAT Delhi28 Mar 2019AY 2011-12

Bench: Shri R.K. Panda & Ms Suchitra Kamble

For Appellant: Shri B. Panda, AdvocateFor Respondent: Shri Prakhar Viplava Gupta, Sr. DR
Section 80I

…es clear that any industrial undertaking, which becomes eligible on satisfying sub-s. (2), would be entitled to deduction under sub-s. (1) only to the extent of profits derived from such industrial undertaking’. In the case of Pandian Chemicals vs. CIT (2003) 262 ITR 278 (SC), the issue was whether the Interest earned by industrial undertaking on deposits with Electricity Board qualifies for relief under s. 80HH. In this section also, the expression used is `derived from’. Answering the question in favour of the Revenue, the Hon’ble Summit Court held that : `The words 'derived from' in s. 80HH must be understood…

DCIT, Rishikesh vs. M/S. Thdc India Ltd., Rishikesh

In the result, the appeals filed by the Revenue as well as the appeals filed by

ITA 1384/DEL/2015[2010-11]Status: DisposedITAT Delhi28 Mar 2019AY 2010-11

Bench: Shri R.K. Panda & Ms Suchitra Kamble

For Appellant: Shri B. Panda, AdvocateFor Respondent: Shri Prakhar Viplava Gupta, Sr. DR
Section 80I

…es clear that any industrial undertaking, which becomes eligible on satisfying sub-s. (2), would be entitled to deduction under sub-s. (1) only to the extent of profits derived from such industrial undertaking’. In the case of Pandian Chemicals vs. CIT (2003) 262 ITR 278 (SC), the issue was whether the Interest earned by industrial undertaking on deposits with Electricity Board qualifies for relief under s. 80HH. In this section also, the expression used is `derived from’. Answering the question in favour of the Revenue, the Hon’ble Summit Court held that : `The words 'derived from' in s. 80HH must be understood…

The DCIT, Circle-2(1)(2), Ahmedabad vs. M/S. Jay Chemical Industries Ltd., Ahmedabad

In the result, the appeal ITA 2693/Ahd/2014, ITA 305/Ahd/2015, cross objection 01/Ahd/2015 & 41/Ahd/2015 all are dismissed

ITA 305/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad26 Mar 2019AY 2011-12
For Appellant: Shri Nimish Viawala, A.RFor Respondent: Shri Vinod Talwani, Sr. D.R
Section 143(2)Section 143(3)Section 195Section 4Section 40Section 5Section 5(2)(b)Section 9Section 9(1)(i)

…s. DCIT dated 26th July, 2013 wherein it is held that steam is not power and not eligible for deduction u/s. 80IA(iv) of the act. The assessing officer has also referred the decision of Hon’ble Supreme Court in the case of Pandian Chemical Ltd. vs. CIT (2003) 262 ITR 278 wherein it is held that such business profit that has direct I.T.A Nos. 2693/Ahd/2014, 305/Ahd/2015 & CO Nos.01 & 41/Ahd/2015 Page No 13 nexus to the essential business activity can qualify for deduction. The assessing officer has further referred the decision of the Supreme Court in the case of Cambay Electronic Supply Industrial Company Ltd.…

The DCIT(OSD)-1, Circle-4, Ahmedabad vs. Jay Chemical Industries Ltd., Ahmedabad

In the result, the appeal ITA 2693/Ahd/2014, ITA 305/Ahd/2015, cross objection 01/Ahd/2015 & 41/Ahd/2015 all are dismissed

ITA 2693/AHD/2014[2010-11]Status: DisposedITAT Ahmedabad26 Mar 2019AY 2010-11
For Appellant: Shri Nimish Viawala, A.RFor Respondent: Shri Vinod Talwani, Sr. D.R
Section 143(2)Section 143(3)Section 195Section 4Section 40Section 5Section 5(2)(b)Section 9Section 9(1)(i)

…s. DCIT dated 26th July, 2013 wherein it is held that steam is not power and not eligible for deduction u/s. 80IA(iv) of the act. The assessing officer has also referred the decision of Hon’ble Supreme Court in the case of Pandian Chemical Ltd. vs. CIT (2003) 262 ITR 278 wherein it is held that such business profit that has direct I.T.A Nos. 2693/Ahd/2014, 305/Ahd/2015 & CO Nos.01 & 41/Ahd/2015 Page No 13 nexus to the essential business activity can qualify for deduction. The assessing officer has further referred the decision of the Supreme Court in the case of Cambay Electronic Supply Industrial Company Ltd.…

ACIT, Moradabad vs. M/S. Jubilant Organosyes Ltd., Uttar Pradesh

The appeal is dismissed

ITA 4975/DEL/2012[2008-09]Status: DisposedITAT Delhi12 Mar 2019AY 2008-09

Bench: Smt Beena A. Pillai & Shri Prashant Maharishi

For Appellant: Shri R.M. Gupta, AdvFor Respondent: Shri J. K. Mishra, CIT DR
Section 115JSection 43(1)

…erred in law and on facts of case in directing to allow deduction u/s 80HHC, 80HH and 80I on interest income as interest income is neither derived from Export business nor from Industrial under taking as per ratio of Hon‟ble Apex Court in decision reported in 262 ITR 278. 7. That Ld. CIT(A) has erred in law and on facts of case in directing A. O. to assess service charges as business income after following his order for A.Y. 98-99 & 00-01 which sure subjudice before Tribunal. 8. That Ld. CIT(A) has erred in law and on facts of case in deleting disallowance of Rs. 41,14,059/- incurred on books and journals which w…

ACIT, Moradabad vs. M/S Jubliant Organosys Ltd., Uttar Pradesh

The appeal is dismissed

ITA 2596/DEL/2011[2007-08]Status: DisposedITAT Delhi12 Mar 2019AY 2007-08

Bench: Smt Beena A. Pillai & Shri Prashant Maharishi

For Appellant: Shri R.M. Gupta, AdvFor Respondent: Shri J. K. Mishra, CIT DR
Section 115JSection 43(1)

…erred in law and on facts of case in directing to allow deduction u/s 80HHC, 80HH and 80I on interest income as interest income is neither derived from Export business nor from Industrial under taking as per ratio of Hon‟ble Apex Court in decision reported in 262 ITR 278. 7. That Ld. CIT(A) has erred in law and on facts of case in directing A. O. to assess service charges as business income after following his order for A.Y. 98-99 & 00-01 which sure subjudice before Tribunal. 8. That Ld. CIT(A) has erred in law and on facts of case in deleting disallowance of Rs. 41,14,059/- incurred on books and journals which w…

Jubilant Organosys Ltd., Noida vs. Addl. CIT, Moradabad

The appeal is dismissed

ITA 2497/DEL/2011[2007-08]Status: DisposedITAT Delhi12 Mar 2019AY 2007-08

Bench: Smt Beena A. Pillai & Shri Prashant Maharishi

For Appellant: Shri R.M. Gupta, AdvFor Respondent: Shri J. K. Mishra, CIT DR
Section 115JSection 43(1)

…erred in law and on facts of case in directing to allow deduction u/s 80HHC, 80HH and 80I on interest income as interest income is neither derived from Export business nor from Industrial under taking as per ratio of Hon‟ble Apex Court in decision reported in 262 ITR 278. 7. That Ld. CIT(A) has erred in law and on facts of case in directing A. O. to assess service charges as business income after following his order for A.Y. 98-99 & 00-01 which sure subjudice before Tribunal. 8. That Ld. CIT(A) has erred in law and on facts of case in deleting disallowance of Rs. 41,14,059/- incurred on books and journals which w…

Sri.Navas M.Meeran, Adimaly vs. The DCIT, Ernakulam

In the result, the appeals of the assessee are partly allowed for statistical

ITA 326/COCH/2017[2006-07]Status: DisposedITAT Cochin01 Mar 2019AY 2006-07

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 69Section 801BSection 80I

…e income and the industrial undertaking was not direct but was only incidental, it would not fall within the expression "profits derived from industrial undertaking”. The Ld. DR relied on the judgment of the Apex Court in the case of Pandian Chemicals Ltd. (262 ITR 278) in which the question was whether the interest derived from the deposit made with the Electricity Board could be construed as a profit derived from the industrial undertaking of the assessee for the purposes of deduction under Section 80HH. According to the Apex Court, the said income was not eligible for the purposes of the claim under Sectio…

Sri.Nava M.Meeran, Adimaly vs. The ACIT, Ernakulam

In the result, the appeals of the assessee are partly allowed for statistical

ITA 325/COCH/2017[2005-06]Status: DisposedITAT Cochin01 Mar 2019AY 2005-06

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 69Section 801BSection 80I

…e income and the industrial undertaking was not direct but was only incidental, it would not fall within the expression "profits derived from industrial undertaking”. The Ld. DR relied on the judgment of the Apex Court in the case of Pandian Chemicals Ltd. (262 ITR 278) in which the question was whether the interest derived from the deposit made with the Electricity Board could be construed as a profit derived from the industrial undertaking of the assessee for the purposes of deduction under Section 80HH. According to the Apex Court, the said income was not eligible for the purposes of the claim under Sectio…

B A International, Meerut vs. ITO, Haldwani

In the result, the appeal of the assessee is allowed

ITA 5691/DEL/2017[2013-14]Status: DisposedITAT Delhi06 Feb 2019AY 2013-14

Bench: Sh. N. S. Sainiita No. 5691/Del/2017 : Asstt. Year : 2013-14 M/S B. A. International, Vs Income Tax Officer, 35/14, Chameli Sadan Purani Haldwani, Delhi Chungi, Meerut Uttrakhand (Appellant) (Respondent) Pan No. Aahfb0501C Assessee By : P. C. Yadav, Adv. Revenue By : Sh. S. L. Anuragi, Sr. Dr Date Of Hearing: 05.02.2019 Date Of Pronouncement: 06.02.2019 Order This Is An Appeal Filed By The Assessee Against The Order Of Cit(A), Haldwani Dated 23.05.2017. 2. Only Issue Involved In The Appeal Is That The Cit(A) Was Not Justified In Confirming Addition Of Rs.1,70,794/- On Account Of Carriage Out Ward Charges.

For Appellant: P. C. Yadav, AdvFor Respondent: Sh. S. L. Anuragi, Sr. DR
Section 80I

…letion of manufacture and had no direct nexus with the manufacturing. 9. Similarly, in the case of CIT Vs Sterling Foods 237 ITR 579 (SC), the issue related to income by sale of import entitlement. 10. Similarly, in the case of CIT Vs Pandian Chemicals Ltd. 262 ITR 278 (SC), the issue was receipt of interest income on deposit made by the assessee for its industrial undertaking. 11. On the other hand, I find that the Ahmadabad Bench of the Tribunal in the case of ITO Vs Horizon Microtech Pvt. Ltd. in ITA No. 1619/Ahd./2007 vide order dated 04.06.2010 held as under: “12. We find from the order of assessment that…

Xl India Business Services Pvt. Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, appeal of the assessee is allowed for statistical purposes

ITA 2145/DEL/2017[2011-12]Status: DisposedITAT Delhi01 Feb 2019AY 2011-12

Bench: Shri Bhavnesh Saini & Shri O.P. Kantassessment Year: 2011-12 M/S. Xl India Business Vs. Addl. Cit, Services Pvt. Ltd., Special Range-9, New Delhi Ff-101, Building No. G-11, Sarines Sonia Sadan, Community Centre, Vikas Puri, New Delhi Pan :Aaacx0309A (Appellant) (Respondent) & S.A. No.16/Del/2019 [Arising Out Of Ita No.2145/Del/2017] Assessment Year: 2011-12 M/S. Xl India Business Vs. Addl. Cit, Services Pvt. Ltd., Special Range-9, New Delhi Ff-101, Building No. G-11, Sarines Sonia Sadan, Community Centre, Vikas Puri, New Delhi Pan :Aaacx0309A (Appellant) (Respondent)

Section 10ASection 10A(1)Section 10A(4)Section 115JSection 143(3)Section 234BSection 250Section 271(1)(c)

…a business pre-requisite had nothing to do with carrying on assessee's business of manufacture and sale of electric meters, same would not be entitled to benefit of deduction under section 80-IC 2 Pandian Chemicals Ltd Vs CIT [2003] 129 Taxman 539 (SC)/[2003] 262 ITR 278 (SC)/[2003] 183 CTR 99 (SC) (Copy Enclosed) where Hon’ble Supreme Court held that words 'derived from' in section 80HH must be understood as something which has direct or immediate nexus with an industrial undertaking. Derivation of interest or profits on deposit with Electricity Board could not be said to be flowing directly from industrial unde…

M/S Globe Precision Industries Pvt. Ltd., Solan vs. ITO, Solan

In the result, appeal of the assessee in ITA 871/CHD/2017 is

ITA 871/CHANDI/2017[2011-12]Status: DisposedITAT Chandigarh04 Jan 2019AY 2011-12
For Appellant: Shri Vineet KrishanFor Respondent: Shri Ankur Alya, Sr.DR
Section 143(3)Section 250Section 250(6)Section 80I

…be given to each word. The Hon’ble Apex court has time and again reinforced this rule of interpretation of statutes in its judgements, right from Padmasundara Rao vs State of TN 255 ITR 147(SC), Mohammad Vs CWT 224 ITR 672(SC) & Pandian Chemicals Ltd. vs CIT 262 ITR 278(SC).In view of the same since the words used in section 80IC categorically state that the provisions of sub section 5 to section 80IA shall apply to the eligible undertaking or enterprise, they have to be read as such and applied to each undertaking, meaning thereby that the prof its of each eligible undertaking has to be treated as if it were th…

M/S Him Teknoforge Ltd, Baddi vs. Deputy Commissioner of Income Tax, Parwanoo

In the result, appeal of the assessee in ITA 871/CHD/2017 is

ITA 784/CHANDI/2017[2010-11]Status: DisposedITAT Chandigarh04 Jan 2019AY 2010-11
For Appellant: Shri Vineet KrishanFor Respondent: Shri Ankur Alya, Sr.DR
Section 143(3)Section 250Section 250(6)Section 80I

…be given to each word. The Hon’ble Apex court has time and again reinforced this rule of interpretation of statutes in its judgements, right from Padmasundara Rao vs State of TN 255 ITR 147(SC), Mohammad Vs CWT 224 ITR 672(SC) & Pandian Chemicals Ltd. vs CIT 262 ITR 278(SC).In view of the same since the words used in section 80IC categorically state that the provisions of sub section 5 to section 80IA shall apply to the eligible undertaking or enterprise, they have to be read as such and applied to each undertaking, meaning thereby that the prof its of each eligible undertaking has to be treated as if it were th…

M/S Him Teknoforge Ltd., Baddi vs. DCIT, Circle, Parwanoo

In the result, appeal of the assessee in ITA 871/CHD/2017 is

ITA 1180/CHANDI/2017[2011-12]Status: DisposedITAT Chandigarh04 Jan 2019AY 2011-12
For Appellant: Shri Vineet KrishanFor Respondent: Shri Ankur Alya, Sr.DR
Section 143(3)Section 250Section 250(6)Section 80I

…be given to each word. The Hon’ble Apex court has time and again reinforced this rule of interpretation of statutes in its judgements, right from Padmasundara Rao vs State of TN 255 ITR 147(SC), Mohammad Vs CWT 224 ITR 672(SC) & Pandian Chemicals Ltd. vs CIT 262 ITR 278(SC).In view of the same since the words used in section 80IC categorically state that the provisions of sub section 5 to section 80IA shall apply to the eligible undertaking or enterprise, they have to be read as such and applied to each undertaking, meaning thereby that the prof its of each eligible undertaking has to be treated as if it were th…

M/S. Schutz Dishman Biotech Pvt.Ltd., Ahmedabad vs. The Dy.CIT, Circle-8, Ahmedabad

In the result, the Revenue’s appeal is dismissed

ITA 1947/AHD/2015[2010-11]Status: DisposedITAT Ahmedabad01 Jan 2019AY 2010-11

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy1. आयकर अपील सं./Ita No.1909/Ahd/2015 2. आयकर अपील सं./Ita No.1947/Ahd/2015 ("नधा"रण वष"/Assessment Year : 2010-11) 1.The Dcit 1. Schutz Disman बनाम/ Circe-8, Ahmedabad Biotech Ltd. Vs. Ahmedabad 2. Schutz Dishman Biotech 2. The Dcit Ltd. Circle-8 Bhadraraj Chambers Ahmedabad Nr.Swastik Cross Road Navrangpura, Ahmedabad "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaccs 0988C .. (अपीलाथ"/Appellants) (""यथ" / Respondents) Assessee By : Shri Tushar Hemani & Shri Parimal Parmar, Ar Revenue By : Shri Vinod Jalwani, Sr.Dr

For Appellant: Shri Tushar Hemani &For Respondent: Shri Vinod Jalwani, Sr.DR
Section 115JSection 36(1)(va)Section 41

…ved from EOU as the same is due to the variation in value of foreign currency and not the value of goods exported. The view is supported by the decision of the Hon'ble Supreme Court in the case of Pandian Chemicals Ltd. vs. CIT (2003) 183 CTR (SC) 99 : (2003) 262 ITR 278 (SC) and Liberty India vs. CIT [2009] 317 ITR 218. Therefore, it is held that exchange fluctuation gain is not an income derived from the qualified activity given in section 10B and so the action of assessing officer in not allowing deduction under section 10B based on the reasons given by him in para 9 of the assessment order (which are not repe…

The DCIT, Circle-8, Ahmedabad vs. Schutz Dishman Biotech Ltd., Ahmedabad

In the result, the Revenue’s appeal is dismissed

ITA 1909/AHD/2015[2010-11]Status: DisposedITAT Ahmedabad01 Jan 2019AY 2010-11

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy1. आयकर अपील सं./Ita No.1909/Ahd/2015 2. आयकर अपील सं./Ita No.1947/Ahd/2015 ("नधा"रण वष"/Assessment Year : 2010-11) 1.The Dcit 1. Schutz Disman बनाम/ Circe-8, Ahmedabad Biotech Ltd. Vs. Ahmedabad 2. Schutz Dishman Biotech 2. The Dcit Ltd. Circle-8 Bhadraraj Chambers Ahmedabad Nr.Swastik Cross Road Navrangpura, Ahmedabad "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaccs 0988C .. (अपीलाथ"/Appellants) (""यथ" / Respondents) Assessee By : Shri Tushar Hemani & Shri Parimal Parmar, Ar Revenue By : Shri Vinod Jalwani, Sr.Dr

For Appellant: Shri Tushar Hemani &For Respondent: Shri Vinod Jalwani, Sr.DR
Section 115JSection 36(1)(va)Section 41

…ved from EOU as the same is due to the variation in value of foreign currency and not the value of goods exported. The view is supported by the decision of the Hon'ble Supreme Court in the case of Pandian Chemicals Ltd. vs. CIT (2003) 183 CTR (SC) 99 : (2003) 262 ITR 278 (SC) and Liberty India vs. CIT [2009] 317 ITR 218. Therefore, it is held that exchange fluctuation gain is not an income derived from the qualified activity given in section 10B and so the action of assessing officer in not allowing deduction under section 10B based on the reasons given by him in para 9 of the assessment order (which are not repe…

Ntt Data Global Delivery Services Ltd., Bangalore vs. DCIT, New Delhi

The appeal of the assessee is partly allowed

ITA 5196/DEL/2014[2009-10]Status: DisposedITAT Delhi20 Dec 2018AY 2009-10

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishintt Data Global Delivery Vs. Dcit, Services Ltd, Circle-13(1), No. 17, South End Road, New Delhi Bangalore Pan: Aabck7777J (Appellant) (Respondent)

For Appellant: Shri Purushottam, AdvFor Respondent: Shri Amit Katoch, CIT DR
Section 10Section 10ASection 143

…as "profits and gains of business" is not allowable under 80-A of the Act. 18. The relevant extracts of the judgments mainly relied upon by the learned counsel for the Revenue are quoted below for ready reference. 19. In Pandian Chemicals Ltd. v. CIT [2003] 262 ITR 278/129 Taxman 539 (SC), the Hon'ble Supreme Court dealing with a controversy with regard to interest on deposits with Electricity Board held that the same could not be treated as 'Profits and Gains derived from Industrial Undertaking" for the purposes of Section 80-HH of the Act. The relevant paragraphs 4 and 6 of the judgment are quoted below for r…