COMMISSIONER OF INCOME TAX Vs. SIDDAGANGA OIL EXTRACTIONS PRIVATE LIMITED

JUDGEMENT

(1.) IN respect of the assessment year 1983-84, the following questions are referred under section 256(1) of the INcome-tax Act, 1961 (for short "the Act"), for our consideration :

(2.) THE assessee is engaged in the business of extraction of oil, having two plants. THE hydrogenation plant suffered loss during the relevant previous year; but the solvent plant earned profit.

(3.) HOWEVER, the Income-tax Officer had set off the loss from the hydrogenation plant against the profits of the solvent plant in computing the benefit under section 80HH in respect of the solvent plant. The Appellate Tribunal upheld the assessee's claim in this regard and held that the solvent plant should be treated separately for purposes of section 80HH.