Satish Chandra, C.J.
1. The assessee is a publishing concern. It, inter alia, publishes an annual publication called ' Dinesh Sure Guess '. In the assessment years 1971-72 and 1972-73, the turnover of sales of this publication was Rs. 4,84,544 and Rs. 6,10,850, respectively. It claimed a specialdeduction of 20% under Section 80QQ of the I.T. Act, 1961. This claim was disallowed on the ground that the publication was of the nature of brochures, tracts and pamphlets, covered by Sub-section (3) of Section 80QQ. On appeal, the claim for deduction of 20% was allowed on the view that the publication did not fall within these exceptions. The Tribunal upheld the allowance of the claim.
2. At the instance of the CIT, the Tribunal has referred for our opinion the following question of law :
'Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in upholding the Appellate Assistant Commissioner's order allowing the benefit of deduction of 20% to the assessee-firm under Section 80QQ of the Income-tax Act, 1961 ?'
3. The Tribunal had the benefit of having a look at the publication itself. The Tribunal found :
'However, the assessee has laid before us some copies of different publications. A perusal of them shows that they are described as 'Dinesh Sure Guess' and each of them contains a year broadly printed on the cover. Their further scrutiny shows that they are not entirely constituted of questions ; instead, answer to those questions are also incorporated and it is these answers which cover substantial parts of the publications. It has been contended that instead of writing a treatise in the narrative, the assessee has, in order to help the students, in their own way published these books in the form of questions and answers. The entire subject of a particular paper is thus said to be exhaustively dealt with in that manner in each publication.
This being the situation it would not be correct to say that the publications of the nature placed before us are not books.
The next question is whether they would come within the exceptions of brochures, tracts and pamphlets. In this respect, we are in agreement with the learned Appellate Assistant Commissioner that these publications could not come under any of them. They are not issued as a memorial on some important occasion of an institution or association nor are pamphlets meant for distribution as propaganda or publicity information on some matters.'
4. On these findings, it is apparent that what the assessee published was a commentary on various subjects which are in use in the schools and colleges. The book is intended to provide assistance to students appearing in examinations. It is in the form of a book, and the contents also disclosed that it is a book as understood in common parlance. Sub-section (3) of Section 80QQ makes an exception by providing that 'For the purposes of this section 'books' shall not include newspapers, journals, magazines, diaries, brochures, tracts, pamphlets and other publications of a similarnature, by whatever name called. ' The Tribunal has rightly pointed out that none of the features of the present publication answers the exceptions provided in Sub-section (3) of Section 80QQ. We are in agreement with the view expressed by the Tribunal.
5. We, therefore, answer the question referred to us in the affirmative, in favour of the assessee and against the department. The assessee will be entitled to costs which are assessed at Rs. 200.