- (1.) This civil appeal is filed by the Department against the judgment dated April 29, 2005 in Tax Cases (Ref) Nos. 144, 408, 409 of 1999 and 70 of 2000 etc. in the case of CIT V/s. Janakiram Mills Ltd., which also covers the case of the assessee-respondent herein.
(2.) At the outset it may be stated that vide the judgment dated August 10, 2007, in Civil Appeals Nos. 7604-05, etc. of 2005 in the case of CIT V/s. Saravana Spinning Mills Pvt. Ltd.2 this court has set aside the impugned judgment herein of the Madras High Court in the case of Janakiram Mills Ltd.,1 principally on the ground that section 31 and section 37 of the Incomer-tax Act, 1961, operate in different spheres and the tests applicable to section 31 cannot be read into section 37 of the Income-tax Act.
(3.) However, we segregated the present Civil Appeal No. 7594 of 2005 from the earlier batch of Civil Appeals Nos. 7604-05 of 2005 as we were told that in the present case the assessee M/s. Ramaraju Surgical Cotton Mills had claimed deduction only under section 37 of the Income-tax Act.;