Pandian Chemicals Ltd. vs Commissioner Of Income-Tax

The Supreme Court examined whether interest earned on deposits made with an electricity board for power supply constitutes income 'derived from' an industrial undertaking for the purpose of deduction under Section 80HH of the Income-tax Act, 1961. The appellant argued that since electricity is essential for the operation of the industrial undertaking, the associated interest income should qualify for the deduction. The Court analyzed the causal link between the industrial operations and the generation of interest income to determine eligibility for tax benefits.