TMI Blog1996 (6) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... e facts and in the circumstances of the case and having regard to the provisions of section 80J(4) of the Income-tax Act, 1961, the Appellate Tribunal was right in holding that the assessee is entitled to relief under section 80J in respect of its seed processing unit ? 2. Whether, on the facts and in the circumstances of the case and having regard to the provisions of section 80J(4)(iii) of the Income-tax Act, the Appellate Tribunal was right in holding that the assessee is entitled to relief under section 80J in respect of its cattle feed unit ? 3. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the assessee is entitled to higher rate of depreciation and development rebate i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eed. In order to verify this aspect, we directed the Tribunal in the earlier assessment year [to consider] the facts arising on this aspect and decide the issue accordingly. Since the same is arising in the present assessment year under consideration and since the facts are not available on record to show as to what is the manufacturing activity or processing activity which the assessee is doing in producing the cattle feed, we consider that in accordance with the order passed by this court in respect of the earlier years in the case of the same assessee, the proper course would be to remit back this issue also to the Tribunal for reconsideration on the merits. Accordingly, we do so. Thus we are returning question No. 2 unanswered. In so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the entry referred to above. According to the Tribunal, since the Revenue did not dispute that the machinery in the sugar factory came into contact with corrosive chemicals, it upheld the view taken by the Appellate Assistant Commissioner. The Tribunal also noted that the Revenue had not appealed against the allowance of similar claim for the preceding assessment year 1970-71 by the Appellate Assistant Commissioner. Before us, learned standing counsel appearing for the Department submitted that the assessee is not entitled to higher depreciation since the machinery used in the said factory is not coming into contact with corrosive materials. Reliance was placed upon the decision of the Punjab and Haryana High Court in CIT v. Saraswati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to contact with the assessee's plant and machinery during the course of manufacture of sugar. The finding of the Income-tax Officer was categorical that the assessee's plant and machinery was not coming into contact with any corrosive chemicals and it was also the finding of the Tribunal. This finding was a finding of fact and no question of law arose. Learned standing counsel for the Department also brought to our notice the decision of the Madhya Pradesh High Court in Gwalior Sugar Co. (P.) Ltd. v. CIT [1989] 178 ITR 415, wherein the Madhya Pradesh High Court held that though the machinery used in the manufacture of sugar came into contact with molasses, which contains iron, lead and copper ; iron, lead and copper are not corrosive chem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ground that it came into contact with corrosive chemicals. A certificate/report of the Assistant Professor of Chemical Engineering, who certified that the machinery in question came into contact with the corrosive chemical, viz., sodium chloride, and further that the factory was situated on a sea-shore, causing severe atmospheric corrosion to the entire plant and machinery. This certificate was accepted by the High Court while answering the question whether the assessee is entitled to higher depreciation since the machinery is coming into contact with sodium chloride (common salt) in favour of the assessee. A combined reading of the decisions produced before us would go to show that in order to get higher depreciation of 15 per cent. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this aspect and grant relief if the assessee satisfied on facts that its machinery came into contact with corrosive chemicals. In that view of the matter, this question is also returned unanswered. Question No. 3 also deals with grant of higher development rebate by the Tribunal. According to the Tribunal, the assessee is entitled to higher development rebate, as per the Fifth Schedule read with section 33(1)(b)(B)(i) of the Act. We also heard learned counsel appearing for the assessee, who submitted that after furnishing proper materials on this aspect and after verifying the same, the authorities below and the Tribunal allowed higher development rebate. But before us no material is available on record to verify whether the assessee is e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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