Whether manufacture of 'radio receivers' and other 'telecommunication equipment' amounted to manufacture of 'electronic equipment' - Income Tax - 559/CBDT

INSTRUCTION NO. 559/CBDT Dated : June 18, 1973 Section(s) Referred: 33 ,80I ,and 6th Schedule Statute: Income - Tax Act, 1961 The Board had occasion to examine in consultation with the Department of Electronics, the question whether manufacture of 'radio receivers' and other 'telecommunication equipment' amounted to manufacture of 'electronic equipment' for purposes of rebates and reliefs permissible under the various provisions of the Income-tax Act. 2. In the First Schedule of the Industries (Development Regulation) Act, 1961, 'radio receivers' including 'public address equipment' find a place under "Item No.6-Telecommunication Equipment" whereas electronic equipment is mentioned separately under "Item No.5-Electrical Equipment" in the said Schedule. On seeking technical opinion the Board has been advised that radio receivers and public address systems are not electronic equipment. In view of the above position, the Board has been advised that radio receivers and public address systems are not electronic equipment. In view of the above position, the Board has decided that the manufacture of 'radio receivers' including 'public address equipments' and their parts are not to be treated as manufacture of electronic equipments for purposes of rebates and reliefs admissible under the Income-tax Act as under: (i) Income-tax and Super-tax rebate to eligible companies as per Part IV of the First Schedule of the Finance Act, 1964 read with Para 'D' of Parts I and II of the said Schedule; (ii) Income-tax rebate to eligible companies as per Part II of the First Schedule of the Finance Act, 1965 read with Para 'F' of Part I of the said Schedule; (iii) Higher development rebate as per Fifth Schedule of Income-tax Act, 1961 read with section 33(1)(b)(i); (iv) Priority industries relief as per Sixth Schedule of Income-tax Act, 1961 read with section 80-I (before its deletion from 1.4.73); (v) Inter-corporate dividends relief as per Fifth Schedule of Income-tax Act, 1961 read with section 85A/80M (before amendment from 1.4.72). 3. Necessary instructions may please be issued to the Income-tax Officers working in each charge on the lines indicated above. Past assessments may be reviewed wherever feasible by 31st July, 1973 positively. A report regarding the results of the review may be sent to the Board by 15th August, 1973.