9911796707
TMI Blog1994 (4) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Act, 1961 ? 2. Whether the decision of the Tribunal that the assessee is entitled to the deduction under section 80J is based on the materials available before the Assessing Officer and the Commissioner (Appeals) ? " This reference relates to the income-tax assessments of the assessee-company for the two previous years corresponding to the assessment years 1981-82 and 1982-83. The assessee-company claimed deduction under section 80J of the Act in respect of its new unit at Konnagar which was set up for the manufacture of pharmaceutical formulations like tetracycline capsules, doxycycline capsules, chloramphenicol capsules and ampicillin capsules. The Income-tax Officer did not allow the claim of the assessee-company on the all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utical products were also furnished before the Commissioner (Appeals). It was explained that the value of plant and machinery installed in the new unit in different years was as under : Rs. 1977 1,03,400 1978 1,03,986 1979 54,040 The Commissioner (Appeals), however, observed that in the balance-sheet, there was no bifurcation to show which plant and machinery were installed in the old unit manufacturing aspirin and which new plant and machinery were installed in the new unit engaged in the manufacture of pharmaceutical products. The Commissioner (Appeals) also referred to the notes forming part of the balance-sheet of the assessee-company drawn as at December 31, 1977, which shows that the assessee-company purchased the factory land a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lin capsules. The assessee also referred to the Tribunal's earlier decision in the assessee's own case for the assessment year 1979-80, wherein the Tribunal while dealing with the disallowance of advertisement expenditure under section 37(3A) of the Act had given a specific finding to the effect that the assessee's new industrial undertaking at Konnagar began to manufacture new pharmaceutical products like tablets, capsules and injections from the accounting year 1978. The Tribunal, therefore, held that the assessee's case fell under section 37(3D) of the said Act and the ceiling in respect of expenditure as laid down in section 37(3A) of the said Act, was not applicable. The assessee also referred to its printed annual report on its accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unit for manufacture of pharmaceutical products were purchased from various persons. The machinery purchased from Martin and Harris Pvt. Ltd., was for the manufacture of aspirin and not for the manufacture of pharmaceutical formulations, which is the only business carried on by the new unit. The Tribunal also found that the facts on record clearly showed that the new unit of the assessee was engaged in the manufacture or production of pharmaceutical formulations like tablets, capsules and injection. The machinery purchased by the assessee-company from its sister concern, Martin and Harris Pvt. Ltd., in terms of an agreement dated September 22, 1976, was in respect of the other unit already engaged in the manufacture of aspirin. The Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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