TMI Blog1988 (11) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 33(1)(b)(B)(i) is in law justified ?" The reference concerns the assessment years 1967-68 to 1972-73. The main business of the assessee was the distribution of petroleum products. It was also engaged in the blending of various grades of lubricating oil. In regard to the activity of blending, the assessee claimed that it was a priority industry and was covered by the provisions of sections 80E and 80-1 and section 33(1)(b)(B)(i) of the Income-tax Act, 1961. The Income-tax Officer declined to give the assessee the benefits contemplated by the aforesaid sections and his order was confirmed in appeal. The Income-tax Appellate Tribunal, however, upheld the assessee's contention in further appeal. Section 33(1)(b)(B) is relevant in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licones in required proportions. The end-product was the lubricating oil, in different grades which, according to the assessee, was mineral oil for the purposes of the said item (3). It must be noted at the outset that the Supreme Court dismissed on April 4, 1983, a special leave petition filed by the Revenue against an order of this court dated March 11, 1980 (in ITA No. 193 of 1979), whereby this court declined to call for a statement of case on the point whether mixing of base mineral oil with additives to produce finished products like lubricating oil could be regarded as "production of mineral oil or petrochemicals" entitling the assessee to relief under the aforementioned sections. (CIT v. Indian Oi1 Blending Co. Ltd., S. L. P. (Ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th, but it also bears the wider meaning canvassed for by the assessee. To the expression "mineral oil" in the said item (3), however, the doctrine that analogous words take their colour from each other (noscitur a sociis) must apply and its meaning must be restricted, having regard to the minerals, metallic ores and stone, viz., coal, lignite, iron ore, bauxite, manganese ore, dolomite, limestone and magnesite, that also appear therein, to oil that is extracted from the earth. In other words, the said item (3) must be held to cover only the stated articles and not what may be made by using them, whether by manufacture or processing or blending. Our attention was drawn to a circular dated March 23, 1971, issued by the Central Board of Dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is court's tentative view assist the assessee. The facts found show that the assessee blended straight mineral base oil with some 18 chemicals besides different dyes, vegetable based oils and silicones. The assessee's end product was, therefore, not mineral oil, as extracted or refined. It was not a mixture of hydrocarbons. It did not, therefore, fall within the meaning of the expression "mineral oil" as used in the said item (3). Mr. Munim submitted that the assessee's lubricating oil would, in any event, fall within item (18) of the Fifth and Sixth Schedules because it was a petrochemical. He said that the Tribunal had, in the aforesaid case of Indian Oil Blending Co. Ltd., so held. Before the assessing authorities and the Tribunal the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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