TMI Blog1991 (9) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... t was delivered by OJHA J. -This appeal has been preferred on the basis of a certificate granted by the High Court of Gujarat under section 261 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). The judgment appealed against is reported as Cellulose Products of India Ltd. v. CIT [1977] 110 ITR 151 (Guj). The respondent is a public limited company incorporated on April 14, 1959, mainly for the purpose of carrying on the business of manufacturing chemical products. The memorandum of association of the respondent-company, as is apparent from the order of the Appellate Assistant Commissioner of Income-tax, inter alia, contains the following clause (See [1977] 110 ITR 151, 159) : "to carry on the business of manufacture of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e years, namely, the assessment year 1961-62 and the four assessment years immediately succeeding as contemplated by sub-section (7) of section 84 of the Act, the respondent was not entitled to the relief claimed in the assessment year 1966-67 which fell beyond the aforesaid period. This finding of the Income-tax Officer was affirmed in appeal by the Appellate Assistant Commissioner. The matter was taken up by the respondent in further appeal before the Income-tax Appellate Tribunal. The respondent's contention that the production of cellulose pulp during the month of March, 1961, was a trial production was repelled by the Tribunal and a categorical finding was recorded by it that cellulose pulp manufactured by the respondent during the mon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n this view, the High Court found that the mere fact that the respondent started the production of cellulose pulp which was an intermediate product on March 18, 1961, did not mean that the company had begun to produce or manufacture "articles" in the assessment year 1961-62. It has been urged by learned counsel for the appellant that the finding recorded by the Tribunal referred to above was essentially a finding of fact based on appraisal of evidence and it was not open to the High Court in its advisory jurisdiction to take a contrary view. For the respondent, on the other hand, in support of the judgment appealed against, it was urged by its learned counsel that inasmuch as section 84 of the Act contemplated grant of relief to a new und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the parties, we are inclined to agree with the contention of learned counsel for the appellant that the High Court, on the facts and in the circumstances of the instant case, committed an error in interfering with the conclusion of the Tribunal. It is settled law that a High Court hearing a reference under the Act does not exercise any appellate or revisional or supervisory jurisdiction over the Tribunal and that it acts purely in an advisory capacity. If the Tribunal, after considering the evidence produced before it on a question of fact, records its finding, it cannot be interfered with in a reference by the High Court unless of course such finding was not supported by any evidence, was perverse or patently unreasonable. In our opinion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Manufacture of cellulose pulp was thus indeed one of the objects of the company. The question involved had to be considered in this background and the Tribunal having done so and recorded the finding of fact referred to above, the High Court obviously committed an error in holding that manufacture of cellulose pulp during March, 1961, was of no consequence and that the first year of production would be the assessment year 1962-63 when CMC was actually manufactured. The decision of the Madras High Court relied on by learned counsel for the respondent reported in Madras Machine Tools Manufacturers Ltd. v. CIT [1975] 98 ITR 119, in view of what has been observed above on the facts of the instant case, does not advance the case of the responde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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