Commissioner of Income Tax vs Trichy Distilleries and Chemicals Ltd.

Mishra, J.—It is not necessary in the instant case to restate the case and the questions referred to us by the Income Tax Appellate Tribunal,

Madras ""A"" Bench, in R.A. No. 503/ (Mds) of 1979 as the first question, ""whether, on the facts and in the circumstances of the case, the

Appellate Tribunal was right in holding that the work-in-progress of the value of Rs. 1,24,352 should be included in the computation of capital for

the purpose of granting relief u/s 80J of the Income Tax Act, 1961 ?"", has been answered by this court in Commissioner of Income Tax Vs.

Southern Agrifurane Industries Ltd., and the answer to the third question, i.e., ""whether the Appellate Tribunal was justified in holding that the

work-in-progress should be included in the computation of capital far granting of relief u/s 80J in respect of its unit of manufacture of rectified spirit

when the said work-in-progress related to carbon-di-oxide unit ?"" is depending upon an answer to the second question, i.e., ""whether, on the facts

and in the circumstances of the case, the Appellate Tribunal was justified in holding and had valid and relevant materials to hold that the Income

Tax Officer treated the carbon-di-oxide plant and rectified spirit as one industrial undertaking ?"" The second question, however, is one which

cannot be investigated as necessary facts in this behalf re not available. The Revenue raised the above contention for the first time before the

Appellate Tribunal and the Tribunal disallowed the ground in these words :

We cannot allow this ground to be raised. The Income Tax Officer in his rectification order or assessment order for 1971-72 has not even

referred to such a point. He had no such ease at all. He had treated both the carbon-di-oxide plant and rectified spirit as one industrial undertaking.

So n argument that there are two industrial undertakings is not permissible. Neither are there any materials placed before us by the Department to

justify such a contention or even indicate that both are different industrial undertakings. Hence, we reject that ground.

The Revenue''s position before us is no better. There are no materials to support any contention that the units manufacturing the rectified spirit

and carbon-di-oxide were different undertakings. We find no error in the approach of the Tribunal that any such ground cannot be raised in the

instant proceeding. The reference is accordingly disposed of. No costs.