| Case ID |
0a8850d1-bb58-43bf-a305-29dffa8b3d30 |
| Body |
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| Case Number |
Income-tax Reference No. 127 of 1977 and No. 587 o |
| Decision Date |
Jan 01, 1991 |
| Hearing Date |
Jan 01, 1991 |
| Decision |
The Bombay High Court ruled in favor of the assessee, Western Mechanical Industries P. Ltd., allowing the claim for tax relief under section 80-I of the Income-tax Act for the assessment year 1972-73. The court found that the heavy-duty cranes manufactured by the assessee were specialized equipment used in specific industries, thereby qualifying as a 'priority industry' under the Sixth Schedule of the Act. The court emphasized that the cranes were not general machinery but were specifically designed for the unique requirements of various plants in industries such as sugar, chemicals, textiles, and cement, which are included in item No. 8A of the First Schedule to the Industries (Development and Regulation) Act, 1951. The decision underscores the importance of recognizing specialized equipment in tax legislation to promote industrial growth. |
| Summary |
In the case of Western Mechanical Industries P. Ltd. vs. Commissioner of Income Tax, the Bombay High Court addressed the issue of tax deductions under section 80-I of the Income-tax Act, 1961. The court evaluated whether the manufacture of heavy-duty cranes by the assessee qualified as a priority industry under the Sixth Schedule. The court highlighted that the cranes were specialized equipment tailored to meet the specific needs of various industries, including sugar and textile manufacturing, thus entitling the company to deductions. This landmark ruling emphasizes the significance of supporting specialized industrial activities through tax incentives, reflecting a broader commitment to fostering industrial growth and development in India. The court's decision reinforces the interpretation of tax laws in favor of entities that contribute to priority industries, ensuring that specialized equipment is recognized for its role in enhancing operational efficiency across various sectors. |
| Court |
Bombay High Court
|
| Entities Involved |
Commissioner of Income Tax,
Western Mechanical Industries P. Ltd.
|
| Judges |
MRS. SUJATA V. MANOHAR,
DHANUKA, JJ.
|
| Lawyers |
G.S. Jetley,
K.C. Sidhwa,
Ms. Manjula Singh,
S.J. Mehta,
I.M. Munim
|
| Petitioners |
Not available
|
| Respondents |
Commissioner of Income Tax,
Western Mechanical Industries P. Ltd.
|
| Citations |
1991 SLD 1303 = (1991) 187 ITR 265
|
| Other Citations |
CIT v. Caltex (India) Ltd. [1989] 177 ITR 239 (Bom.),
CIT v. South Arcot District Co-operative Marketing Society Ltd. [1989] 176 ITR 117 (SC),
CIT v. Sriyansh Knitters [1989] 178 ITR 466 (Punj. & Har.),
Hindustan Wire Products Ltd. v. CIT [1986] 161 ITR 749 (SC)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
80-I,
256(1),
80B(7)
|