- (1.) THIS civil appeal is directed against the judgment of the Division Bench of the High Court of Kerala dated 9-6-2003 in ITA No. 240 of 2002.
(2.) THE short question which arises for determination in this civil appeal is as follows: "Whether on facts and circumstances of the case the assessee was entitled to claim deduction under Section 80-HH in respect of the profits derived by the assessee from processing of cashew in the factories owned by its sister concerns/outsiders?" In this case we are concerned with Assessment Year 1994-1995.
(3.) WE quote hereinbelow the said Section 80-HH(1): "80-HH. Deduction in respect of profits and gains from newly established industrial undertakings or hotel business in backward areas.- (1) Where the gross total income of an assessee includes any profits and gains derived from an industrial undertaking, or the business of a hotel, to which this section applies, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction from such profits and gains of an amount equal to twenty per cent thereof." The above Section 80-HH comes under Chapter VI-A. Chapter VI-A is again divided into various sub-chapters. We are concerned with sub-chapter C which refers to deductions in respect of certain incomes.;