9911796707
TMI Blog1990 (6) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany. Its accounting year relevant for assessment year 1982-83 ended on30-6-1981. The assessee derives income from the business of manufacture and sale of tyre retreading plants. The assessee had claimed deduction under section 80-I of the Income-tax Act by way of a letter dated7-2-1985addressed to the assessing officer. The Income-tax Officer, however, did not deal with the claim of the assessee while completing the assessment on11-2-1985. The application under section 154 filed by the assessee was. also rejected by the Income-tax Officer vide his order dated24-9-1985. The assessee preferred a quantum appeal before the Commissioner of Income-tax (Appeals) who also rejected the assessee's claim under section 80-I. It is this order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were bad because no Rule-making authority could circumvent, distort, abridge or whittle down the clear and unambiguous provisions of the law. It was also pointed out that the circular referred to by the learned counsel for the assessee was not a benevolent circular. 6. We have considered the rival submissions as also the facts on record. Previously the "tax holiday provisions were contained in section 80-J of the Income-tax Act which were applicable in relation to new industrial undertakings which went into production before1st April, 1981. Finance (No. 2) Act, 1980 inserted a new section 80-I which applied in relation to new industrial undertakings which were set up after31-3-1981. Sub-section (2) of section 80-I laid down the condition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6-1980relevant to the assessment year 1981-82. The present assessment which relates to assessment year 1982-83 represented the second year of the commencement of the manufacturing business. It is, therefore, clear that the manufacture or production of article or thing in the instant case was not begun on or after1-4-1981. This condition has, therefore, not been fulfilled by the assessee. 7. The Board's Circular relied upon by the learned counsel for the assessee does not say that it will be applicable to assessment year 1981-82 even if the conditions contained in sub-section (2) of section 80-I were not fulfilled. In fact paragraph 19.3 of the said Circular clearly states as follows :-- "The Finance Act has inserted a new section 80-I w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous. The Board's Circular also reiterates the position incorporated in the section. The Board's instructions, therefore, do not depart or deviate from the spirit or letter of the section. We fail to understand how the aforesaid Circular can be interpreted to mean a benevolent Circular when the intention of the Board is very clear that the new provisions of section 80-I shall be available to an industrial undertaking which has started functioning on or after1-4-1981. By no stretch of imagination the aforesaid Circular can be called a benevolent Circular and so the ratio of the decision in the case of Softek (P.) Ltd. is not applicable in this case. 8. Having regard to the entire facts and circumstances of the case, we are of the considered ..... X X X X Extracts X X X X X X X X Extracts X X X X
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