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TMI Blog1981 (4) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant considerations by its order dated June 19, 1976, as per annex. C. That is why we will not be in a position to answer the two questions referred to us as per the statement of case dated March 4, 1977. We will have to adopt the course which was adopted by the Supreme Court in CIT V. Indian Molasses Co. P. Ltd. [1970] 78 ITR 474, and will have to remit the matter to the Tribunal for a fresh decision in the light of the opinion expressed by us in the course of this judgment. The two questions which have been referred to us turn on the interpretation of item No. (17) of the Schedule in the context of the benefits available under s. 80-1 of the Act, as it stood at the material time. They are : "1. Whether, on the facts and in the circumstances of the case the assessee is a priority industry within the meaning of item No. (17) of the Fifth and Sixth Schedules to the Income-tax Act, 1961, and as such entitled to the allowance of the claim for the deduction under section 80-I of the Income-tax Act, 1961 ? 2. Whether, on the facts and in the circumstances of the case, the assessee is entitled to the development rebate at a higher rate on the basis that it is a priority industry w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o reverse the decision of the Commissioner. The Tribunal shut its eyes to the basic reasoning and structure of the decision of the Commissioner, refused to look at it or counter it by a rational process but instead, built its decision on an altogether irrelevant circumstance on which nothing turned. It is a good illustration of non-nexus between the irrelevant circumstance and the conclusion. The conclusion is of the nature of non sequitur. The Tribunal, saying so with respect, made an altogether unwarranted and unrealistic approach. The Tribunal felt obsessed by the circumstance that the assessee-company had supplied its articles mainly to (1) Philips India Ltd., (2) Bajaj Electronics, and (3) Greaves Cotton. The Tribunal appears to have been overawed by the impression (way be a justified one) that these well-known companies manufacture sophisticated electronic goods. From these two postulates the Tribunal frog leaped to the impossible conclusion that the items manufactured by the assessee-company, namely fluorescent lamp starters and glow lamp switches, would fall under item No. (17) of Sch VI and would be eligible for relief under s. 80-I of the Act. We, can do no better than (f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Legislature under s. 80-I read with item No. (17) of Sch. VI. Again, the Tribunal has altogether failed to examine, analyse or critically consider the material placed on the record by the assessee. The Tribunal has merely made a bold assertion without discussing how such material went to support the claim of the assessee for relief. The judgment of the Tribunal is then altogether unsatisfactory in view of the aforesaid basic infirmities. So far as the question of interpretation of item No. (17) is concerned, we have no manner of doubt that the interpretation placed by the Commissioner is the only possible interpretation that can be placed thereon. Item No. (17) opens with the specification of the articles in respect of which relief is being granted in a general way. It refers to electronic equipment. Having used the expression " electronic equipment ", the Legislature has proceeded to enumerate the equipments which are meant to be covered by the said expression " electronic equipment " and that is why the Legislature has used the expression " namely ". When the Legislature used the expression " electronic, equipment " and then proceeded to state which specified articles wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... granting relief which the Legislature did not expressly grant by a process of interpretation. In other words, we, in the discharge of judicial function, would be granting relief in a way by amending the entry in such a manner that its visage is changed in the name of the nebulous elastic interpretation theory. We do not think that we have the jurisdiction to do so. Under the circumstances, we cannot accede to the submission of the learned counsel for the assessee in this behalf. It was then argued that the list of priority industries in the Schedule to the I.T. Act should be read along with the list of priority industries as specified in Appendix. I to the volume of Import Trade Control Policy for the relevant year (popularly known as " Red Book ") with an eye on achieving conformity. Now, the scope of the concept of priority industries for the purpose of import trade control in the Red Book, issued by the Ministry of Commerce, is altogether different. The concept of priority industries has been introduced in para. 22 onwards in the Red Book. Subhead (i) pertains to import of spare parts by priority industries, and sub head (ii) pertains to import of raw materials and components ..... X X X X Extracts X X X X X X X X Extracts X X X X
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