TMI Blog1968 (4) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... esent assessment is 2015-16 Diwali Samvat. In the course of assessment proceeding for this year the assessee had claimed exemption from tax under section 15C of the Indian Income-tax Act, 1922, which is allowable to a newly established industrial undertaking. The same claim had also been made by the assessee in respect of the assessment of the immediately preceding year, 1959-60, and such claim had been refused originally by the Income-tax Officer on the ground that rice milling is not an industrial undertaking within the meaning of section 15C of the said Act. The assessee had preferred an appeal against the said order to the Appellate Assistant Commissioner in respect of the said assessment for 1959-60. The Appellate Assistant Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s mentioned hereinbefore, although the assessment order itself does not mention either any claim under section 15C or the grounds of rejection of such claim. There was an appeal before the Appellate Assistant Commissioner who upheld the order of the Income-tax Officer ; The assessee preferred an appeal before the Income-tax Appellate Tribunal. The Tribunal accepted the position that under section 15C(2) of the Income-tax Act of 1922, if an industrial undertaking had been formed by the transfer to the new business of such machinery or plant which had already been used in a business which was being carried on before the 1st April, 1948, the exemption would not be applicable, but at the same time the Tribunal interpreted the word "transfe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otification in the official gazette, specify with reference to any particular industrial undertaking ; (iii) employs ten or more workers in a manufacturing process carried on with the aid of power, or employs twenty or more workers in a manufacturing process carried on without the aid of power ..........." The only question that requires consideration is whether purchase of one second-hand steam engine by this industrial undertaking disentitles it to exemption under clause (i) of sub-section (2) of section 15C of the said Act. The scheme of this section is to encourage new industrial undertakings provided they fulfill the conditions mentioned in the various clauses of the sub-section. It is true that in order to be entitled to exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ining purpose, that did not disentitle an assessee from enjoying the benefit of section 15C of the Indian Income-tax Act, 1922. The Punjab High Court, however, was considering sub-clause (ii) of sub-section (2)of section 15C of the said Act. The said decision of the Punjab High Court went up in appeal to the Supreme Court. The Supreme Court judgment is Commissioner of Income-tax v. Webbing and Belting Factory Ltd. The Supreme Court felt that there was no clear evidence of the user of the machinery in the pilot project before 1st April, 1948, and as such the High Court had no jurisdiction to answer the question in the manner done, and as such the Supreme Court directed a supplementary statement of case to be called for. In view of the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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