TMI Blog2004 (9) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... te and has come to the conclusion that the respondent was a small scale industrial undertaking - Tribunal was legally justified in holding that the assessee was a recognised export house and a small scale exporter who was manufacturing and producing articles and hence was entitled to weighted deduction under section 35B - - - - - Dated:- 1-9-2004 - Judge(s) : R. K. AGRAWAL., K. N. OJHA. JUDGMENT The judgment of the court was delivered by R.K. Agrawal J.- The Income-tax Appellate Tribunal Delhi, has referred the following three questions of law under section 256(1) of the Income-tax Act, 1961, hereinafter referred to as "the Act", for the opinion of this court: "1. Whether, on the facts and in the circumstances of the case, the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e respondent is not a small scale industrial undertaking and the certificate of export house issued by the Government of India, Ministry of Commerce, New Delhi dated February 9, 1979, was effective from February 19, 1979, to June 30, 1979, and therefore could not be taken into consideration. The first appeal filed by the respondent on this point did not meet with any success. However, in further appeal the Tribunal had granted weighted deduction under section 35B for the period April 1, 1978, onwards on the ground that the respondent had filed certificate issued by the U.P. Government registering it as a small scale industrial unit and the export house certificate issued by the Government of India, Ministry of Commerce which is in relatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith Explanation is reproduced below: "(1A) Notwithstanding anything contained in sub-section (1), no deduction under this section shall be allowed in relation to any expenditure incurred after the 31st day of March, 1978, unless the following conditions are fulfilled, namely- (a) the assessee referred to in that sub-section is engaged in- (i) the business of export of goods and is either a small-scale exporter or a holder of an Export House Certificate; or (ii) the business of provision of technical know-how, or the rendering of services in connection with the provision of technical know-how, to persons outside India; and (b) the expenditure referred to in that sub-section is incurred by the assessee wholly and exclusively for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere the previous year ends after the 17th day of March, 1985, thirty-five lakh rupees, and for this purpose the value of any machinery or plant shall be,- (a) in the case of any machinery or plant owned by the assessee, the actual cost thereof to the assessee; and (b) in the case of any machinery or plant hired by the assessee, the actual cost thereof as in the case of the owner of such machinery or plant." Thus from a reading of clause (2) of the Explanation to section 32A(2) of the Act, an industrial undertaking is deemed to be a small scale industrial undertaking where the value of any machinery or plant installed for the purpose of the business of undertaking did not exceed ten lakh rupees. In the present case, the Government ..... X X X X Extracts X X X X X X X X Extracts X X X X
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