ORDER :

S.H. Kapadia, J.

Leave granted in Special Leave Petitions. Two questions, as stated hereinbelow, arise for determination in this batch of Civil Appeals:

"(1) Whether appellant-assessee was entitled to deduction under Sections 80-HH and 80-I of the Income Tax Act, 1961 in respect of ship breaking activity undertaken by it?

(2) Whether 'usance interest' partakes of the character of purchase price and, therefore, not liable to deduction at source under Section 195(1) of the Income Tax Act, 1961?"

We may refer to C.As Nos. 6692-6723/2003 for deciding these appeals.

Answer to Question No.1:

2. The Income Tax, 1961 Act does not define the expression 'industrial undertaking'. Section 80HH falls under Chapter VIA. Section 80HH falls under sub-Chapter C which deals with "deductions in case of certain incomes". Section 80HH deals with deduction in respect of profits and gains from newly established industrial undertakings. Under Section 80HH(1), it is, inter alia, provided that where gross total income of an assessee includes any profits and gains derived from an industrial undertaking to which the section applies, then, a deduction shall be allowed in computing the total income of the ass