TMI Blog1974 (5) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... 1965 relevant to the assessment year 1966-67, the assessee claimed development rebate under section 33 of the Act at the rate of 25% on the value of the machinery installed after April 1, 1965, worth Rs. 34,287 against which the rebate was allowed at 20%. The assessee-company also claimed benefit under section 80E which was inserted by the Finance Act, 1966, with effect from April 1, 1966, to the extent of its income determined by the Income-tax Officer at Rs. 8,17,485 received from the manufacture of straw-board. This industry falls under item No. 16 mentioned in the Fifth Schedule to the Act as substituted by the Finance Act of 1965. The claim of the company was negatived by the Income-tax Officer. For the year 1966, relevant to the assessment year 1967-68, the total income of the company was determined at Rs. 11,00,885. It claimed that it was entitled to the relief provided under section 80E to the extent of Rs. 7,50,316 which was derived from the manufacture of straw-board. The Income-tax Officer did not accept the contention of the company that it was a priority industry. He held that manufacture of straw-board was not covered by the words "paper and pulp" in the respective sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. It has been observed by their Lordships of the Supreme Court in Ramavatar Budhaiprasad v. Assistant Sales Tax Officer, that the words occurring in a taxing statute must be construed not in any technical sense nor from the botanical point of view but as understood in common parlance. It is further observed that they must be construed in their popular sense meaning that sense which people conversant with the subject-matter with which the statute is dealing would attribute to them. The question before their Lordships of the Supreme Court was whether the betel leaves were vegetables or not. Applying the aforesaid test, the learned judges held that they were not included in the definition of vegetable. This view was followed by that court in Sarin Chemical Laboratory v. Commissioner of Sales Tax and Commissioner of Sales Tax v. S. N. Brothers. In S. N. Brothers' case the question for determination was as to how the words "dyes and colours" and "scents and perfumes"as occurring in U.P. Sales Tax Act, 1948, were to be interpreted. It was observed by the learned judges as follows: "The words 'dyes and colours' used in entry No. 10 and the words 'scents and perfumes' used in entry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... print, paper-board and straw-board. Straw-board is ordinarily used for packing. A packing material can very well be included in the definition of paper. A similar question came up before a Division Bench of the Allahabad High Court in Kores India Ltd. v. State of Uttar Pradesh . It arose under the Uttar Pradesh Sales Tax Act, 1948. The question was whether carbon paper was a "paper" or not. The learned Bench observed that, in the ordinary sense, paper refers generally to the material used for writing, printing or wrapping. The Bench, after applying the aforesaid test, held that the carbon paper could not be considered to be a "paper" in that sense. Such a question also came up before another Bench of that High Court in Kilburn Co. Ltd. v. Commissioner of Sales Tax. There the question was whether ammonia paper and ferro paper used for obtaining prints and sketches of site plans were not paper as understood generally. The learned Bench observed that the word "paper" has not been defined in the Act or the Rules and, as such, it has to be given the meaning which it has in ordinary parlance. "Paper",as understood in common parlance, is the paper which is used for printing, writing and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in industry for manufacture of "paper including newsprint and paper-board". He further submits that in the Act as originally framed, item No. 9 of Part 'A' of the Fifth Schedule has been given as "paper including news print and paper-board". He has then referred to the Fifth Schedule as it existed at the relevant time wherein item No. 16 was "paper and pulp". It is then submitted by him that the Schedule was amended later on and the words "including newsprint" were added in item No. 16 after the word "pulp". Referring to the aforesaid changes, he argues that the intention of the legislature was clear that it did not want to include straw-board within the aforesaid entry. This contention we have examined at considerable length but do not find any substance in it. Section 56A of the 1922 Act and section 99 of the Act as originally framed, in which the Fifth Schedule was referred to, related to super-tax. Super-tax has been abolished. Section 99 has also been repealed. The learned counsel for the department cannot derive any help from the aforesaid two sections and entries thereunder. The amendment of item No. 16 in the year 1966 by addition of the words "including newsprint" also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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