HINDUSTAN ZINC LTD Vs. DY CIT

JUDGEMENT

(1.) This appeal by the assessee is against the order of Commissioner (Appeals) for assessment year 1977-78. The appellant has agitated on various grounds which are being discussed and decided in this order.

(2.) The appellant is a public limited company engaged in mining, processing and distribution of Zinc and Lead.

(3.) Ground No. 1(i). This ground pertains to the non-allowance of expenses incurred on deprivation charges paid to M/s Metal Corporation of India for the takeover of the said undertaking. Observations of the assessing officer in this regard may be perused at page 6 para 14 of the assessment order, and those of the Commissioner (Appeals) from page 1 of his order. The facts of the case are that the Central Government appointed the appellant, Hindustan Zinc Ltd., as administrator of the undertaking known as Metal Corporation of India Ltd. from 10-1-1966 to 2-8-1976. vide Notification S.O. 526(E) dt, 3-8-1996. The notification reads as under :