1983 (5) TMI 28

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..... Ref. Nos. 59 to 64 of 1977, relating to the assessment years 1966-67 to 1971-72, as an answer to the following two questions referred to us, first one in Nos. 59 and 60 and the second in Nos. 61 to 64, depends upon the interpretation of item No. 7 of the Fifth Schedule of the Income-tax Act : "1. Whether, on the facts and in the circumstances of the case, the assessee company was entitled to the .....

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..... ricity, including transmission cables and transmission towers. The stand of the assessee was that since the copper and aluminium wires manufactured by it were covered by the word, " cables " so this industry was entitled to the benefits available to the priority industry. The Tribunal upheld the claim of the assessee on two grounds. Firstly, that the particular descriptive nature of the cables, or .....

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..... the generation and transmission of electricity. Though it is provided in it that the equipment will include transformers, cables and transmission towers, yet, these cables, etc., would be covered by this item only if they are meant for generation and transmission of electricity and not otherwise. The learned counsel for the respondent, however, urged that the very fact that the item manufactured .....

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..... ransmission of electricity. As such these would not be covered by the said item No. 7. The second reason given by the Tribunal, that the decision relating to the earlier assessment year 1965-66 would bind the parties as no fresh facts had come into existence, is equally unsustainable. It was specifically urged before the Tribunal that, in the earlier years, the ITO had not dealt with this issue a .....

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..... e basis of which the ITO and the AAC held that the cables manufactured by the assessee were not covered by item No. 7 and the Tribunal's observations were without any basis and wholly contrary to record. For the reasons recorded above, both the questions noted above are answered in favour of the Revenue and against the assessee. No costs. PREM CHAND JAIN J.-I agree.
Case laws, Decisions, Jud .....

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