DIPAK KUMAR SEN, J.

( 1 ) THE material facts and proceedings leading up to the present reference are as follows :

( 2 ) UNION Carbide India Ltd. , the assessee, carries on business of manufacture of various products. In the assessment year 1975-76, the relevant accounting year ending on December 25, 1971, the assessee acquired some trawlers with sophisticated equipment like echosounders, electronic fish finding equipment, trawlers, radars, etc. , for deep sea fishing and set up a "deep Sea Fishing Division" for fishing shrimps in the deep sea.

( 3 ) THE trawlers and the equipments were utilised not only for fishing but also for decapitating, peeling and packing shrimps in special containers and freezing them in special quick-freezing chambers installed in the vessels.

( 4 ) IN the assessment year 1975-76, the assessee was assessed to income-tax. In the assessment, the assessee claimed relief under Section 80j of the Income-tax Act, 1961, in respect of its undertaking, "deep Sea Fishing Division". The Income-tax Officer, following the decision of the Bombay High Court in New India Fisheries Ltd. v. ITO [1971] 82 ITR 765, held that the profits and gains from the activity of catchi

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