COMMISSIONER OF INCOME TAX Vs. SUESSIN TEXTILE BEARING LIMITED

JUDGEMENT

(1.) IN this case, at the instance of the Revenue, the following question has been referred to us for our opinion :

(2.) THE facts leading to this reference are that the assessee is a limited company and is carrying on the business of manufacturing ball bearings and other machineries used in textile spinning Departments. The assessment year under consideration is 1962 63, the previous year being the year ending September 30, 1961. The assessee claimed relief under S. 84 of the IT Act, 1961, in the revised return which it filed on January 15, 1963. The ITO negatived the claim by holding that the assessee could not be termed as a new industrial undertaking within the meaning of S. 84 of the IT Act, 1961. In coming to this decision, he also relied on the decision of the Tribunal for the asst. year 1961 62 in the case of this very assessee.

(3.) IT may be pointed out that the reference against the decision of the Bombay Bench of the Tribunal for the asst. year 1961 62 was made to the Bombay High Court and the decision of the Bombay High Court is to be found in CIT vs. Suessin Textiles Ball Bearing & Products (P.) Ltd. (1979) 118 ITR 45 (Bom). We are informed that the references against the decision of the Tribunal for the asst. yrs. 1963 64, 1964 65 and 1965 66 are pending. The main ground why the ITO declined to grant relief under S. 84 to the assessee was that the assessee had taken on hire a building for office purposes and it had also taken on rent a shed for installing machinery and that both the office space and the shed where the machinery was installed had been used by other persons for their own purposes prior to the renting of these spaces office space and the shed by the assessee.