9911796707
TMI Blog1982 (4) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... carriers, dredgers and their accessories on ownership, hire, lease or any other basis including ferry service of passenger or cargo. 2. To carry on the business of manufacturing, importing, and exporting and dealing marine stores, marine engines of all kinds, boilers, cold storage, air-conditioning equipments and all other apparatus and machinery articles which are capable of being used by ships, boats, trawlers, and dredgers". The ancillary objects were as under: 1. To enter into, take over, negotiate or otherwise acquire any contract or contracts for the construction, building, equipping, fitting out, storing, gearing or otherwise relating to any steamship, ship, trawler, catcher, carrier, drifter, fishing boar, boat or other vesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... repairs to the dry dock were also completed and the dry dock made serviceable to 1st Jan, 1976. This has enabled the company to undertake repairs of the ocean-going vessels. So far, the company has completed repair works to 3 ocean-going trawlers including a foreign vessel. The main handicap facing the company is silting the Horseschoebend in the Bamban Channel and in the boat-basin. While the desilting work in the boat basin will be undertaken by the Company itself, the State Government has been approached for dredging the horseshoebend . Once this is done, it will be possible for a larger number of vessels to come to our dry dock for repairs. The Company has contacted the Agriculture Ministry of the Govt. of India for obtaining the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 74, the Company received an enquiry from the Tamil Nadu Fisheries Development Corporation for the supply of fishing trawlers. The company furnished the necessary details such as the price, delivery period, price escalation clause, labour charges and payment terms, etc., by its letter dt. 6th July, 1974. The Tamil Nadu Fisheries Development Corporation then placed an order for the supply of 4 indigenous and 4 foreign vessels on the terms and conditions mentioned in its letter dt. 8th July, 1974. An advance amount of Rs. 1 lakh was also received by the appellant by a cheque of the Corporation which was dt. 27th July, 1974. The next set of letters, copies of which have been filed, relates to the enquiry received from Shri Amba Motors (Agencies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urther pointed out that regular administrative and technical staff had been appointed who were in service through out the year". The assessee had filed copies of papers evidencing the factual claims made in these paragraphs. He considered these facts and found that in view of the decision in the case of CIT vs. Sourashtra Cement and Chemical Industries Ltd. (1973) 91 ITR 170 (Guj), there was no case for disallowance. He, therefore, allowed the appeal." 4. In the Departmental appeal, the fact are not disputed. But these facts, according to the grounds, do not justify the inference of the first appellate authority. Neither the fact that repairs were done, nor receipt of advance towards contracts for construction of boats, nor the business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ossible to pinpoint the precise date of actual commencement of business, it is not correct to draw an inference from a single fact, i.e. completion of dry dock. The assessee s business objects were wide. The business started related to repairs of ships and construction of barges, trawlers, etc. The first appellate authority has adverted to a number of facts, one of which was that certain activities indicated that business started in Feb, 1975. The fact that the assessee company itself claimed the date as from 1st April, 1975 does not make his inference wrong. His inference is not far of the mark. ITO is no doubt, correct in his view that in respect of a new business the accounting year commences from the date on which the business is set up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 976, a point repeatedly stressed on behalf of revenue, it was not unusable earlier. It was used for repair work and as found by the first appellate authority first repair charges were received in July 1975, and stores for them were purchased earlier. It was further found that regular administration and technical staff were hired for service even by 1st April, 1975. On these and other facts including report of activities in the Director s Report, we are not in a position to say that the first appellate authority was in error in accepting the assessee s plea. As for the two decisions relied upon by revenue, both the decisions, in our view, are clearly inapplicable to the facts before us. In the case of CIT vs. Forging Stamping Pvt. Ltd. (19 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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