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Section 35D of Income Tax Act

Shikha (Company Secretary) (24 Points)

01 October 2008

Dear Proffesionals

What is the definition of industrial undertaking as per section 35D of the indian income tax act 1961?

Does Industial Undertaking includes Education industry?

Regards

Shikha Jain

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2 Replies

CA PRAMOD SARAOGI (Chartered Accountant) (1113 Points)
Replied 01 October 2008

Industrial Undertaking has not been defined in Section 35D. The term ‘industrial undertaking’ is capable of wider definition having regard to the requirements set out under the provisons of various sections under the I.T> Laws and it cannot be merely limited to the undertakings engaged in manufacture, produce and processing of articles or goods . Futher conditions are also imposed . Expression ‘industrial undertaking’, used in sections 80HH and 80-I, has to be considered to mean essential trade activity of the assessee and not otherwise. The word ‘derive’ means derived from industrial activity and industrial activity means business in which industry is involved - CIT v. Paras Oil Extraction Ltd. [1998] 96 Taxman 234/230 ITR 266 (MP).