COMMISSIONER OF INCOME TAX Vs. MOHAN MEAKIN BREWERIES LIMITED

JUDGEMENT

(1.) AT the instance of the Commissioner of Income-tax, New Delhi, the Income-tax Appellate Tribunal, Chandigarh Bench, has referred the following two questions for our opinion with regard to the assessment of the respondent-company's income for the assessment year 1963-64, These questions are as under :

(2.) WHILE referring these two questions to this court the Tribunal has unfortunately not given out the proper data relevant to these two questions in the statement of facts submitted by it. The facts and the reasoning on which the Tribunal has taken a particular view on these two questions are not clear even by reference to the Tribunal's judgment in the appeal before it, found at annex. C. We have, therefore, gathered the necessary data on admitted facts from the record before us. These facts can be stated as under.

(3.) IT is found that during the course of assessment the respondent-assessee claimed benefit of tax exemption under Section 84 and rebate on super-tax under Section 101 of the I.T. Act, 1961, as those sections then existed in the scheme of the Act. IT should be noted here that previous to the introduction of Section 84 the exemption contemplated by it was given by Section 15C of the earlier Act of 1922. IT need not be emphasised that this exemption is intended to encourage the setting up of new industrial enterprises and, therefore, Section 84 contemplates that the profits of the new industrial undertakings which fulfil the conditions prescribed by this section would be entitled to exemption from income-tax to the extent of 6% per annum on the capital employed in the undertaking in question. Section 101 contemplates rebate on the super-tax which such a concern is liable to pay. This rebate is to be computed with reference to the income-tax which is not payable on profits or gains under Section 84.