9911796707
|
Home
Issues:
1. Entitlement to rebate on share of profits derived from Electrical Industries Corporation for assessment years 1964-65, 1965-66, and 1966-67. 2. Entitlement to deduction under section 80E on share of profits for assessment year 1966-67. 3. Entitlement to rebate on share income derived from Electrical Industries Corporation under Companies (Profits) Surtax Act, 1964. Analysis: The judgment dealt with various issues concerning the entitlement of the assessee to rebates and deductions on profits derived from Electrical Industries Corporation for different assessment years. The court analyzed the provisions of the Finance Act, 1964, Finance Act, 1965, and the Income-tax Act, 1961 to determine the eligibility of the assessee for rebates and deductions. The court examined the specific items listed in the Acts related to the manufacture of electrical equipment and components, such as transformers and cables, to assess whether the income derived by the assessee qualified for the claimed benefits. For the assessment years 1964-65 and 1965-66, the court considered the provisions of the Companies (Profits) Surtax Act, 1964, and the relevance of items 6 and 16 in rule 2 of Schedule III to determine the eligibility of the assessee for a rebate on the share income from Electrical Industries Corporation. The court reviewed the nature of the products manufactured by the firm and their essentiality in the generation and transmission of electricity, ultimately concluding that the assessee was entitled to the claimed relief based on the findings of fact by the Tribunal. Regarding the assessment year 1966-67, the court examined the provisions of section 80E of the Income-tax Act, 1961, which allowed deductions for profits from specified industries. The court assessed whether the assessee's share income from the partnership qualified for the deduction under this section, emphasizing the requirement for income attributable to specific business activities as outlined in the Act. The court upheld the Tribunal's findings and ruled in favor of the assessee, directing the Income-tax Officer to compute the tax accordingly for the relevant year. The judgment also addressed the arguments raised by the department's counsel challenging the findings of fact recorded by the Tribunal. The court clarified the limitations on its jurisdiction to question the Tribunal's factual determinations unless expressly challenged in the reference application. The court emphasized the importance of factual evidence supporting the Tribunal's findings and dismissed the department's submissions, ultimately ruling against the Revenue and in favor of the assessee on all references, with no order as to costs.
|
