1978 (8) TMI 123

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ad computed the interest of the assessee in the industrial undertaking at Rs. 45,132. Though there is no discussion in the order of assessment, it transpires that in making such computation the WTO had, in terms of r. 2--I of the WT Rules, considered as the starting point only assets excluding assets in the shape of factory building and land. 2. The assessee appealed to the AAC. In order to appreciate the contentions of the assessee in the appeal before us, we would set out the working of the AAC for the asst. yr. 1973-74 as under: . . Rs. Rs. "Gross assets as per balance sheet as on 31st March, 1973 . 41,72,737 Deduct: (1) Land as per Balance sheet 25,742 . (2) Building as per Balance sheet 3,35,524 . (3) Investment a per Bal .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... WTO and the AAC have taken the interpretation that the assets have to exclude land, building and rights in land and building of whatsoever nature whereas the learned counsel submitted that what can be excluded is only that type of land or building or rights in such land or building as would fall under other sub-sections of s. 5(1), such as, for example, the building under s. 5(1)(iv) to the stipulated extent of value or the land in s. 5(1)(iv)(a) etc.--of course subject to the monetary limit in s. 5(1A). 5. According to the learned Departmental Representative, land or building or interest in land or building of any nature had to be left out of consideration from the value of assets and also such other assets as are referred to in other su .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... hts in such assets are not to be excluded but only the value of the assets themselves. This is one of the interpretations possible. Even if the interpretation canvassed by the Department is possible, we consider that the first being the interpretation more beneficial to the assessee, such interpretation should be given to s. 5(1)(xxxii) in accordance with the well recognised canons of interpretation of statutes). For authority for this proposition see the observations of the Supreme Court in CIT West Bengal I vs. Vegetable Products Ltd.(1) at page 195). 7. It is directed that on the basis of the aforesaid conclusion, we direct that the computation as made by the AAC would stand modified to the extent that from the gross value of the assets .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X