TMI Blog1980 (10) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... previous year for the assessment year 1957-58 would be from 1st January, 1956, to 31st December, 1956. The assessee manufactures springs and spring leaves of various sizes and dimensions for use in commercial and passenger motor vehicles and also manufactures certain accessories. The records of the ITO showed that the assessee started production in the year 1951 which was the relevant previous year to the assessment year 1952-53. The ITO declined to give to the assessee the benefit of the exemption under s. 15C of the said Act on the ground that under sub-s. (6) thereof the said relief was admissible only for five successive assessment years commencing with the assessment year in the previous year relevant to which the assessee commenced p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this decision of the Tribunal, the following question has been referred to us for our determination: " Whether, on the facts and in the circumstances of the case, the assessee-company was entitled to the relief under section 15C for the assessment year 1957-58 ? " Mr. Mehta, the learned counsel for the assessee, has strongly disputed the view of the Tribunal that even the commencing of trial production amounts to manufacture for the purpose of sub-s. (6) of s. 15C of the said Act, and has relied upon the decision of a Division Bench of this court in CIT v. Hindustan Antibiotics Ltd. [1974] 93 ITR 548. In that case, the assessee-company undertook a project for the manufacture of penicillin. It started actual operations for the manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt referred to above. As the Tribunal has pointed out, it was admitted by the assessee that it had commenced production in 1951, the contention of the assessee merely being that the said production was a trial production. As no material has been produced by the assessee at any stage to justify that contention, it must be taken as established that the assessee did not prove that the said production in 1951 was merely a trial production. The assessee must, therefore, be held to have commenced production in 1951 and was not entitled to the benefit of the exemption under s. 15C of the said Act in respect of newly established industrial undertakings, beyond the assessment year 1956-57 In the result, the question referred to us is answered in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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