TMI Blog1971 (5) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... r, on the facts and in the circumstances of the case, the assessee's industrial undertaking was not formed by the transfer to its business of machinery or plant previously used in any other business within the meaning of section 15C(2)(i) of the Indian Income-tax Act, 1922, for the purposes of tax exemption in accordance with section 15C(1) of the said Act ? (2) Whether, on the facts and in the circumstances of the case, the machineries worth Rs. 2,68,515 was new machinery within the meaning of section 10(2)(vib) of the Indian Income-tax Act, 1922 ?" In order to settle these questions, it is necessary to set out the relevant facts. The assessee is a public limited company. It is engaged in the production of milk foods. For its establis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal has reversed that decision and given the assessee the benefit of section 15C. The department being dissatisfied, moved the Tribunal for a reference under section 66(1) of the 1922 Act. The Tribunal has thus referred the two questions of law already set out in the earlier part of this order, for our opinion. So far as the first question of law is concerned, it will be necessary to set out the relevant part of section 15C(2) which applies to an industrial undertaking which " is not formed .... by the transfer to a new business of building, machinery or plant previously used in any other business." The contention of the learned counsel for the department is that we must read this provision along with section 10(2)(vib) and as in section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de for interpretation of the word " machinery " in section 15C(2). Both the provisions have been enacted for different purposes and thus one will not control the other. It is of significance that in section 10(2)(vib) the word " building " is not used by the legislature along with the word " machinery ". Moreover, in section 10(2)(vib) the legislature used the word " new " before " machinery ", whereas in section 15C(2) the word " new " has not been used before the word " machinery ". The main ground on which the Tribunal proceeded was that as the substantial part of the machinery is new, it is immaterial whether 20 per cent. of the machinery is old. According to the Tribunal for all intents and purposes the entire machinery should be tre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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