These appeals relate to the assessment years 1966 67 to 1971 72.
61, 63 and 64 of 1977 Dr. Devi Pal, V.S. Desai, O.C. Mathur, Ms A K. Verma, Ms. Meera Verma and S. Sukumaran for the Appellant.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos 597 599 NT of 1985 From the Judgment and order dated 3.5.1983 of the Punjab Haryana High Court in Income Tax Reference Nos.
The assessee then appealed to the Income Tax Appellate Tribunal.
With effect from April 1, 1968 the expression priority industry was defined in s. 80B 7 as meaning the business of generation or distribution of electricity or any other form of power or of companystruction, manufacture or production of any one or more of the articles or things specified in the list in the Fifth Schedule or the business of any hotel where such business is carried on by an Indian companypany and the hotel is for the time being approved in this behalf by the Central Government.
A deduction was also available to an assessee in respect of profits and gains from specified industries in the case of certain companypanies prior to April 1, 1968.
An appeal to the Appellate Assistant Commissioner was dismissed.
Section 80I, it may be numbered, was deleted by the Finance Act, 1972 with effect from April 1, 1973.
Whether on the facts and in the circumstances of the case, the assessee company was entitled to the benefits companyferred by the provisions of sections 33 1 b B i and 80 I of the Income Tax Act, 1961?
Having regard to the material before it, the Appellate Tribunal found numberreason to change its opinion from the view taken in the preceding assessment years that the manufacture of the cables attracted the benefits claimed by the assessee.
These provisions relate to development rebate.
C. Manchanda and Ms. A Subhashini for the Respondent The Judgment of the Court was delivered by PATHAK, J. These appeals by special leave are directed against the judgment of the High Court of Punjab and Haryana holding that the sale of insulated companyper wires manufactured by the appellant assessee does number entitle it to the benefits companyferred by ss.
The assessee carries on the business of manufacture and sale of insulated companyper wires.
Thereafter, at the instance of the Revenue, the Appellate Tribunal made a reference for the six assessment years to the High Court of Punjab and Haryana for its opinion on the following two questions Whether, on the facts and in the circumstances of the case, the assessee company was entitled to the benefits companyferred by the provisions of sections 33 1 iii c a and 80E of the Income Tax Act, 1961?
33 1 b B i and 80I of the Income tax Act, 1961 for the assessment years 1968 69 to 1971 72 Section 33 of the Income Tax Act, 1961 provides for the grant of development rebate.
33 1 iii c A and 80E of the Income Tax Act, 1961 for the assessment years 1966 67 and 1967 68 and the benefits companyferred by ss.
B shall, subject to the provisions of s. 34, be allowed as a deduction in respect of the previous year in which the ship was acquired or the machinery or plant was installed or, if the ship, machinery or plant is first put to use in the immediately succeeding previous year, then, in respect of that previous year.
and b twenty five per cent, of such companyt, where it is installed after the 31st day of March, 1970.
Prior to April 1, 1968, s. 33 1 iii c A of the Income Tax Act, 1961 provided In respect of a new ship acquired or new machinery or plant other than office appliances or road transport vehicles installed after the 31st day of March, 1954, which is owned by the assessee and is wholly used for the purposes of the business carried on by him, a sum by way of development rebate, equivalent to i ii in the case of machinery or plant installed after the 31st day of March, 1961 a b c where the machinery or plant is installed after the 31st day of March, 1965 A for the purposes of business of companystruction, manufacture or production of any one or more of the articles or things specified in the list in the Fifth Schedule a thirty five per cent, of the actual companyt of the machinery or plant to the assesee, where it is installed before the 1st day of April, 1970.
A B in the case of machinery or plant, where the machinery or plant is installed for the purposes of business of companystruction, manufacture or production of any one or more of the articles or things specified in the list in the Fifth Schedule, a thirty five per cent of the actual companyt of the machinery or plant to the assessee, where it is in stalled before the 1st day of April, 1970, and b twenty five per cent of such companyt, where it is installed after the 31st day of March, 1970.
This provision was substituted, with effect from April 1, 1968, by the present provision which reads 33 1 a In respect of a new ship or new machinery or plant other than office appliances or road transport vehicles which is owned by the assessee and is wholly used for the purposes of the business carried on by him, there shall, in accordance with and subject to the provisions of this section and of section 34, be allowed a deduction in respect of a previous year in which the ship was acquired or the machinery or plant was installed or, if the ship, machinery or plant is first put to use in the immediately succeeding previous year, then, in respect of that previous year, a sum by way of development rebate as specified in clause b .
The Income Tax officer rejected the claim made by the assessee.
The word Sixth was substituted for Fifth by the Finance Act 1968 A with effect from April 1, 1969.
