Profits and gains from publication of books

Last updated: 14 February 2008

Court :
ITAT

Brief :
The assessee was engaged in the business of printing and publication of yellow pages directory. It claimed deduction under section 80Q in respect of profits derived from such business. The Assessing Officer as well as the Commissioner (Appeals) denied the deduction under section 80Q on various grounds viz (i) yellow pages directory could not be said to be ‘book’, (ii) the assessee had distributed the yellow pages directory to various section of public (free of cost) and therefore, same would not amount to publication, (iii) Yellow pages printed by the assessee fell within the excluded items under sub-section (3) of section 80-Q on the ground that the same fell within the expression "Other publications of the similar nature by whatever name called" used by the legislature after the words newspapers, journals, magazines diaries, brochures, tracts, pamphlets in sub-section (3) of section 80-Q. There was common thread running through the various items mentioned in excluded category i.e. such publication do not have author and since there was no author, in yellow pages, the same could not be described as book, (iv) the entire income was generated by the assessee from the advertisements given in the yellow pages and there was no income from the sale of yellow pages and, therefore, income could not be said to be derived from publication of books.

Citation :
Tata Infomedia Ltd. v Assistant Commissioner of Income-tax