1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX REFERENCE NO.182 OF 1996 Commissioner of Income-tax, Bombay City XIII, Bombay .. Applicant. V/s. M/s.Arihant Shipbreakers .. Respondent. Mr.R.V. Desai, senior counsel with Mr.A.S. Rao for the applicant. CORAM : S. RADHAKRISHNAN & CORAM : S. RADHAKRISHNAN & CORAM : S. RADHAKRISHNAN & J.P. DEVADHAR, JJ. J.P. DEVADHAR, JJ. J.P. DEVADHAR, JJ. DATED : 7TH MARCH, 2005. DATED : 7TH MARCH, 2005. DATED : 7TH MARCH, 2005. P.C. : 1. Heard learned counsel for the application. In the above, question of law referred to reads as under : 1. Whether, on the facts and in the circumstances of the case, the activity of Ship-breaking carried on by the assessee, could be regarded as an industrial undertaking engaged in manufacture or production of an article or thing for the purpose of Sec. 80-HH and/or 80-I of the Income-tax Act, 1961 ? 2. Whether, on the facts and in the circumstances of the case, the I.T.A.T. was right in law in holding that the assessee is eligible for deduction u/s.80HH and 80-I of the Income-tax Act, 1961, in suspect of the profits and gains arising from the activity of Ship-breaking ? 2. The learned counsel for the applicant fairly states that the issues involved in the above are squarely covered by the judgment of this court in the case of Ship Scrap Traders & Others V/s. CIT [251 Ship Scrap Traders & Others V/s. CIT [251 Ship Scrap Traders & Others V/s. CIT [251 2 ITR 806] ITR 806] ITR 806] with regard to both the questions. 3. In view thereof, the questions are answered in affirmative in favour of the assessee against the revenue. (S. RADHAKRISHNAN, J.) (J.P. DEVADHAR, J.)