9911796707
TMI Blog1985 (10) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... erence with the assessment year 1970-71 for which the corresponding previous year was the financial year ending March 31, 1970. The assessee mainly carries on business in the manufacture and sale of hand-knitting machines and water-filters. During the relevant previous year, it had installed and brought into use some new machinery for the manufacture of hand-knitting machines, and the dispute is as to whether development rebate admissible in respect of the said new machinery installed as aforesaid should be at the rate of 35% as claimed by the assessee. This claim was made on the footing that a hand-knitting machine was a piece of textile machinery covered by item 4 in the Fifth Schedule to the Income-tax Act, 1961, read with item 8, sub-it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but it was also necessary that it should be specialised equipment used in a specific industry, that is, the textile industry. It was also contended before the Tribunal on behalf of the Revenue that the hand-knitting machines could not be called textile machinery. The Tribunal pointed out that the only material piece of evidence on the question whether hand-knitting machines could be regarded as textile machinery was the registration certificate issued by the office of the Textile Commissioner and a perusal of item 2 of that certificate shows that goods manufactured by the assessee, namely, hand-knitting machines, were regarded by the Textile Commissioner as textile machinery. Relying on this evidence, the Tribunal upheld the claim of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omplied with, the development rebate permissible to the assessee in respect of new machinery would be 35%. Item 4 of the Fifth Schedule to the Income-tax Act, 1961, runs as follows: "Industrial machinery specified under the heading '8. Industrial machinery', sub-heading 'A'. Major items of specialised equipment used in specific industries', of the First Schedule to the Industries (Development and Regulation) Act, 1951 (LXV of 1951)." Relevant portion of item or heading 8 of the First Schedule to the Industries (Development and Regulation) Act runs as follows "8. INDUSTRIAL MACHINERY: A Major items of specialised equipment used in specific industries : (1) Textile machinery (such as spinning frames, carding machines, power-looms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ines manufactured by the assessee were not intended for use in the textile industry. It is impossible to accept this submission. There is no evidence on record which would suggest that the hand-knitting machines were not used in textile industry or were not intended for use in the textile industry. In fact, the certificate which we have referred to earlier shows that the hand-knitting machines were regarded by the Textile Commissioner as textile machinery. The next submission of Mr. Jetly was that knit-wear produced or manufactured by the said hand-knitting machines could not be regarded as a textile. In our opinion, there is no substance in this submission either. In the first place, if on the evidence it is found that the hand-knitting ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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