TMI Blog1989 (4) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... ave are directed against a judgment of the High Court of Punjab and Haryana disposing of an income-tax reference in favour of the respondent-assessee. The assessee manufactures strawboard. For the assessment years 1965-66, 1966-67 and 1967-68 (the relevant previous years being the respective calendar years 1964, 1965 and 1966), the assessee claimed concessional rates of income-tax, development rebate at higher rate and deduction under section 80E of the Income-tax Act, 1961, on the ground that the manufacture of strawboard was a priority industry. For the assessment year 1965-66, the total income assessed was Rs. 17,71,334 and against the basic rate of 80 per cent., the assessee claimed rebate at the rate of 35 per cent. up to Rs. 10,00,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x in respect of the three assessments, but the appeals were dismissed. In second appeals filed in all the three cases, the assessee's plea that the manufacture of strawboard was a priority industry was accepted and the Appellate Tribunal held that the assessee was entitled to the statutory rebates claimed by it. At the instance of the Revenue, the Tribunal referred the following questions to the High Court for its opinion "Assessment year 1965-66: Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that 'strawboard' is covered by the term 'paper and pulp' appearing in Paragraph F of Part I read with Part III of the First Schedule to the Finance Act, 1965 (X of 1965) ? Assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in the context of a law providing for concessional rates of tax for the purpose of encouraging an industrial activity, a liberal construction should be put upon the language of the statute. From the material before us, which we have carefully considered, that is the only reasonable conclusion to be reached in this case. The High Court has referred to the licence dated May 31, 1954, issued to the assessee that the undertaking of the assessee was registered in terms of section 10 of the Industries (Development and Regulation) Act, 1951, and the details given in the licence declare that it relates to a Schedule industry which includes newsprint, paperboard and strawboard. The High Court has also referred to the circumstance that the process ..... X X X X Extracts X X X X X X X X Extracts X X X X
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