| Case ID |
38fd16de-fe7b-480a-b00a-47c3eb85eb31 |
| Body |
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| Case Number |
Income-tax Application No.141 and IT.As. Nos.l47 a |
| Decision Date |
Aug 16, 1995 |
| Hearing Date |
|
| Decision |
The court held that the issue regarding the cold storage's entitlement to an investment allowance of Rs. 1,20,818 for electrical installations, racks, and machinery was erroneous under Section 32-A of the Income Tax Act, which applies specifically to businesses engaged in the manufacture or production of goods. The court determined that the mistake in the earlier order could be rectified under Section 154 of the Income Tax Act. Consequently, the Tribunal was directed to prepare a statement of the case and refer the question of law to the High Court for further consideration. |
| Summary |
This case revolves around the rectification of mistakes concerning the Income Tax Act, 1961, specifically addressing the investment allowance for a cold storage facility. The main legal question was whether the cold storage was entitled to an investment allowance, which was initially denied based on the interpretation of Section 32-A, applicable only to manufacturing businesses. The court's decision emphasized the importance of correctly identifying the nature of business activities when determining eligibility for tax benefits. The ruling reinforced the procedural aspect of rectification under Section 154, highlighting the judicial process's role in ensuring fairness in tax assessments. With the growing emphasis on tax compliance and rectification mechanisms, this case serves as a pivotal reference for similar disputes in the realm of income tax law. |
| Court |
Allahabad High Court
|
| Entities Involved |
Not available
|
| Judges |
B.M. LAL,
M. C. AGARWAL
|
| Lawyers |
Bharatji Agarwal,
R.K. Mishra
|
| Petitioners |
COMMISSIONER OF INCOME TAX
|
| Respondents |
SHARVAN COLD STORAGE AND GENERAL MILLS
|
| Citations |
1998 SLD 406,
1998 PTD 3110,
(1996) 222 ITR 670
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
154,
256
|