9911796707
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Issues:
1. Interpretation of Taxation Concessions Order for the assessment year 1964-65. 2. Determination of whether the assessee firm was carrying on business before the appointed day. 3. Justification of the Tribunal's decision in granting concessions under the Taxation Concessions Order. Detailed Analysis: 1. The judgment involves a reference under section 256(1) of the Income Tax Act, 1961, regarding the entitlement of an assessee-firm to taxation concessions as per the Dadra and Nagar Haveli and Goa, Daman and Diu (Taxation Concessions) Order, 1964, for the assessment year 1964-65. The central question posed was whether the Tribunal was correct in holding that the assessee was carrying on business before the appointed day, thereby qualifying for the taxation concession under the Order. 2. The assessee, a partnership firm engaged in wholesale and retail sale of cloth and surgical goods, claimed the taxation concession based on a partnership deed executed on March 31, 1964, which stated that the business had been operational since April 1, 1963. The Assessing Officer initially denied the concession, but the Appellate Authority Commissioner (AAC) and subsequently the Tribunal ruled in favor of the assessee, affirming that the entity had been conducting business both before and after the appointed day under the Taxation Concessions Order. 3. The Revenue contended that there was insufficient evidence to support the Tribunal's finding that the assessee was operating before the appointed day. However, the Court declined to delve into the facts as the question was framed based on the assumption that the Tribunal's factual findings were accepted. The Revenue further argued for reframing the question, citing a previous case, but the Court rejected this request due to procedural complexities and the substantial time elapsed since the original assessment. 4. The Court considered the Revenue's argument regarding the applicability of partnership laws in Goa before the appointed day and the extension of the Partnership Act to Goa in 1964. It was highlighted that if a partnership existed before the appointed day and continued its operations afterward, it would be eligible for the concessions under the Taxation Concessions Order. The Court ultimately upheld the Tribunal's decision, emphasizing that based on the facts presented, the assessee was entitled to the concessions under the Order. 5. In conclusion, the Court ruled in favor of the assessee, affirming the Tribunal's decision to grant taxation concessions under the Taxation Concessions Order. The Revenue was directed to bear the costs of the reference, bringing closure to the legal proceedings surrounding the interpretation and application of the Taxation Concessions Order for the relevant assessment year.
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