Agro Cargo Transport Ltd. vs Commissioner of Income Tax

K.A. Thanikkachalam J.

At the instance of the assessee, the Tribunal referred the following questions of law for the opinion of this court u/s 256(2) of the Income Tax

Act, 1961 :

(1) Whether, on the facts and in the circumstances of the case, the expressions ''industrial undertaking'' and ''industrial unit'' according to section

35D includes an undertaking engaged in the transportation of goods by trucks ?

(2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that rule 6AA was not applicable to the assessment

year 1981-82 being introduced only with effect from August 1, 1981 ?

The first question relates to whether the expressions ""industrial under-taking"" and ""industrial unit"" according to section 35D includes an under-

taking engaged in the transportation of goods by trucks. In Agrocargo Transport Ltd. Vs. Commissioner of Income Tax, , in the case of the same

assessee this court held that the assessee is not an industrial undertaking. Inasmuch as the order passed by the Tribunal is in accordance with the

above cited decision of this court, we answer question No. 1 in the affirmative and against the assessee.

In so far as question No. 2 is concerned, it relates to relief u/s 35B of the Act. The claim is based on rule 6AA which has no application

because it was introduced only with effect from August 1, 1981, and with no retrospective effect. So, the claim was rejected by the Tribunal. The

order passed by the Tribunal is in accordance with the judgment of the Calcutta High Court in Commissioner of Income Tax Vs. Bishnauth Tea

Co. Ltd., , and that of this court in Commissioner of Income Tax Vs. S. Palaniswamy, . Inasmuch as the order passed by the Tribunal is in

accordance with the above cited decision, we answer the second question referred to us in the affirmative and against the assessee. The tax case is

ordered accordingly. No costs.