IN THE HIGH COURT OF GUJARAT AT AHMEDABAD INCOME TAX REFERENCE No 382 of 1992 For Approval and Signature: HON'BLE MR.JUSTICE M.S.SHAH and HON'BLE MR.JUSTICE A.M.KAPADIA ============================================================ 1. Whether Reporters of Local Papers may be allowed : NO to see the judgements? 2. To be referred to the Reporter or not? : NO 3. Whether Their Lordships wish to see the fair copy : NO of the judgement? 4. Whether this case involves a substantial question : NO of law as to the interpretation of the Constitution of India, 1950 of any Order made thereunder? 5. Whether it is to be circulated to the concerned : NO Magistrate/Magistrates,Judge/Judges,Tribunal/Tribunals? -------------------------------------------------------------- COMMISSIONER OF INCOME-TAX Versus BHAGWATI SHIPBREAKING INDUS. -------------------------------------------------------------- Appearance: 1. INCOME TAX REFERENCE No. 382 of 1992 MR MANISH R BHATT for Petitioner No. 1 NOTICE SERVED for Respondent No. 1 -------------------------------------------------------------- CORAM : HON'BLE MR.JUSTICE M.S.SHAH and HON'BLE MR.JUSTICE A.M.KAPADIA Date of decision: 17/03/2004 ORAL JUDGEMENT (Per : HON'BLE MR.JUSTICE M.S.SHAH) In this reference at the instance of the revenue, the following question has been referred for our opinion for assessment year 1985-86:- "Whether, the Appellate Tribunal is right in law and on facts in directing the assessing officer to allow deduction u/s.80HHA and 80-I when the assessee was carrying on ship breaking activity?" 2. We have heard Mr MR Bhatt, learned Standing Counsel for the revenue. Though served, none appears for the respondent-assessee. 3. Our attention is invited to the decision of this Court in CIT vs. Vijay Ship Breaking Corporation, 261 ITR 113 wherein this Court has taken the view, in the context of the provisions of Section 80HH and 80I of the Income-tax Act, 1961, that ship breaking is not a manufacturing activity. Since the provisions of Section 80HHA are also similar to the provisions of Section 80HH and 80I in so far as the question of eligibility for getting deduction under the said provision is concerned, we follow the aforesaid decision of this Court and answer the question referred to us in the negative i.e. in favour of the revenue and against the assessee. 4. The reference accordingly stands disposed of. (M.S. SHAH, J.) (A.M.KAPADIA, J.) zgs/-