COMMISSIONER OF INCOME TAX Vs. SAHNEY STEEL AND PRESS WORKS LIMITED

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Hyderabad, has referred the following question for our opinion under s. 256(1) of the I.T. Act, 1961, at the instance of the Revenue :

(2.) ON December 31, 1968, the Government of Andhra Pradesh in Industries Department issued G.O. Ms. No. 1225, providing certain facilities and incentives to entrepreneurs wishing to set up industries in the State with a view to speed up the Industrial development of the State. This G.O. was superseded by G.O. Ms. No. 455, Industries and Commerce Department dated May 3, 1971. The preamble to both the G.Os. is identical, and, therefore, it is sufficient if we notice the reasons for issuance of the said G.Os. as recited in the second G.O. It states :

(3.) THE assessee - Sahney Steel and Press Works Ltd. - set up a factory at Patancheru in Medak District, which went into production in the year 1973. THE assessee maintains its accounts according to the calendar year. It was, therefore, entitled to the benefits of the said G.O. in the calendar year 1973, which means the assessment year 1974-75. In the said accounting year, the assessee obtained refund of the following three items totaling Rs. 14,665.70 in terms of G. O. Ms. No. 455. THE three items are :