Commissioner of Income Tax vs freezeking industries (p) ltd.

Arijit Pasayat, C.J.

These four reference applications shall stand disposed of by our common judgment.

Dispute relates to the assessment years 1970-71 to 1973-74.

Following questions have been referred for our opinion:

"Assessment years 1970-71 and 1971-72 :

Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the deduction u/s 80-I of the Income Tax Act, 1961 is admissible in respect of profits attributable to manufacturing of article even where such manufacturing process as listed in the Sixth Schedule is an intermediary stage in ''industry''?

Assessment year 1972- 73 :

Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the assessed was entitled to development rebate at higher rate of 25 per cent in respect of machinery used in the manufacturing of steel castings and forgings, even if it was an intermediary stage in the industry?

Assessment year 1973- 74 :

Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the deduction u/s 80-I is admissible in respect of profits attributable to manufacturing of article even where such manufacturing process as listed in the Sixth Schedule is an intermediary stage in ''industry''?

Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the assessed was entitled to development rebate at higher rate of 25 per cent in respect of machinery used in the manufacturing of steel castings and forgings, even if it was an intermediary stage in the industry?"

We have heard the learned counsel for the revenue. There is no appearance on behalf of the assessed.

Identical issue was for consideration of this court in the assessed''s own case for the assessment year 1974-75 in CIT v. Freezeking Industries (P) Ltd. (2001) 116 Taxman 803. Following the views expressed in the said case, we hold that the question relating to grant of development rebate has to be answered in the negative, in favor of the revenue and against the assessed. As a consequence, the questions relatable to deduction u/s 80-I of the Income Tax Act, 1961, are of academic interest and need no answer.

All the four references are disposed of accordingly.