( 1 ) THE present appeal under Section 260 A of the Income tax Act, 1961 (hereinafter referred as the Act) is preferred by the Revenue raising the following question:- Whether the amount of "duty draw back" can be regarded as income derived from an industrial undertaking so as to entitle the assessee a deduction under section 80-I of the Income Tax Act, 1961?

( 2 ) IN this matter one need not go into the facts as it is an admitted position that the assessee who is a manufacturer, has received "duty draw back" in view of the export of garments. The question is whether the amount of "duty draw back" which the assessee has received can be considered to be "profits and gains derived from an industrial undertaking" in the context of section 80-I of the Act. Sub-section (1) of Section 80-I of the Act, is relevant for our purpose and, therefore, we reproduce it below:-

"80-I (1) Where the gross total income of an assessee includes any profits and gains derived from an industrial undertaking or a ship or the business of a hotel or the business of repairs to ocean-going vessels or other powered craft to which this section applies, there shall, in accordance with and subject