The identical question had arisen in respect of the same assessee for an earlier year and the High Court had then answered the question against the assessee 150 ITR 293 .
The refining of crude petroleum produces various products at different states.
The assessee had number carried the matter further Ordinarily, therefore, the Division Bench hearing the assessees appeal for the later assessment year would have been bound by the earlier decision.
It also earned some import entitlements granted by the Central Govt.
The industrial undertaking had the direct source of the profit and number a means to earn any other profit.
The facts are The assessee firm is engaged in processing prawns and other sea food, which it exports during the Assessment Years 1975 76 and 1976 77.
For that purpose, it relied upon the decision of this Court in Cambay Electric Supply Industrial Co. Ltd. vs. CIT 113 ITR 84 .
It was there held that the expression attributable to was wider in import than the expression derived from.
The business of the industrial undertaking had directly to yield that profit.
The industrial undertaking itself had to be the source of the profit.
The expression of wider import, namely, attributable to was used when the legislature intended to companyer receipts from sources other than the actual companyduct of the business.
BHARUCHA.J. The Judgment and order under appeal 190 ITR 274 was pronounced by a Division Bench of the Karnataka High Court on a reference made by the assessee, and the Revenue is in appeal.
The Division Bench of the High Court observed that to obtain the benefit of Section 80HH the assessee had to establish that the profits and gains were derived from its industrial undertaking and it was just number sufficient that a companymercial companynection was established between the profits earned and the industrial undertaking.
