TMI Blog1964 (4) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that corporations or individuals who had any concessions before April 1, 1950, would thereafter, be entitled only to such concessions as would be permissible under the Concessions Order? Held that:- In the circumstances the respondents cannot rely on the agreement with the former State of Madhya Bharat, which must be deemed to have been superseded by the legislative provisions which came into force from April 1, 950, and can only get such concessions as may be allowed to them under the Income-tax Act read with the Concessions Order. We have already pointed out that the Government of India allowed concessions for five years, which the respondents have already availed of. They are not entitled to any further concession by virtue of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arts required in connection with the factory and raw materials, packing and other material required for the factory, and on the export of finished products of the factory. 2. No tax on the profits of the factory would be levied for a period of seven years from the date the factory starts working. 3. There would be no restriction on export from Madhya Bharat of the products of the concern. 4. Within two years from the date of the Government order, the respondents would install and work an up-to-date biscuit factory in Gwalior of a capacity of 8 tons and a confectionary factory of 5 tons per day of 8 hours and invest a total capital on machinery and buildings of approximately Rs. 15 lakhs. 5. The respondents would start constructi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gated the Part B States (Taxation Concession) Order, 1950 (hereinafter referred to as the Concessions Order) in December, 1950 and clause 16 thereof provided for concessions to industrial undertakings. The respondents thereupon applied under that clause for exemption as a matter of abundant caution, though they were entitled to exemption by virtue of the agreement with the former State of Madhya Bharat. They were, however, granted exemption only for five years from 1952-53 to 1956-57 and they were further informed that though the exemption was granted, their income from the factory in Madhya Bharat would be liable to inclusion in their total income. When the concession granted by the Government of India expired, the Income-tax Officer proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y at Gwalior for the period ending on June 30, 1958. Thereupon, the Income-tax Officer applied for a certificate which was granted ; and that is how the appeal hascome up before us. This appeal has been heard along with the appeals of Union of Indio v. Gwalior Rayon Silk Mfg. (Wvg.) Co. Ltd., judgment in which has just been delivered. We have in that case considered the scope and effect of the provision contained in article 295(1)(b) of the Constitution and have held that in view of the position emerging on April 1, 1950, by the extension of the Income-tax Act to the territory of the Part B State of Madhya Bharat by the Finance Act of 1950 and in view of the Concessions Order, the concessions granted by the Government of the former State ..... X X X X Extracts X X X X X X X X Extracts X X X X
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