Mafatlal Fine Spg. and Mfg. Co. Ltd. Vs. Commissioner of Income-tax - Court Judgment

Excerpt:
- - 16 of the finance act, 1974, which permits allowance of development rebate only on those machineries for which orders had been placed before 1-12-1973. in this case the orders for the purchase of accessories were placed after 1-12-1973. that being so, it was clearly beyond the cut off date specified in s.order for which placed after 1-12-1973held :the cut off date '1-12-1973' assumes utmost importance in view of the provisions contained in s. 16 of the finance act, 1974, which permits allowance of development rebate only on those machineries for which orders had been placed before 1-12-1973. in this case the orders for the purchase of accessories were placed after 1-12-1973. that being so, it was clearly beyond the cut off date specified in s. 16 of the finance act, 1974. the claim for development rebate in respect thereof was, therefore, liable to be rejected. further, the admitted position is that the original order placed by the assessee for purchase of plant and machinery before 1-12-1973 did not include the accessories in question for which a separate order was placed by the assessee.....

Judgment:
ORDER

FOR WHICH PLACED AFTER 1-12-1973

Held :

The cut off date '1-12-1973' assumes utmost importance in view of the provisions contained in s. 16 of the Finance Act, 1974, which permits allowance of development rebate only on those machineries for which orders had been placed before 1-12-1973. In this case the orders for the purchase of accessories were placed after 1-12-1973. That being so, it was clearly beyond the cut off date specified in s. 16 of the Finance Act, 1974. The claim for development rebate in respect thereof was, therefore, liable to be rejected. Further, the admitted position is that the original order placed by the assessee for purchase of plant and machinery before 1-12-1973 did not include the accessories in question for which a separate order was placed by the assessee after 1-12-1973, and in that view of the matter it is not covered by s. 16(1)(c) of the Finance Act, 1974.

Conclusion :

Date in which order was placed being beyond cut off date specified in s. 16(c) of the Finance Act, 1974 not entitled to development rebate even though order for the plant which accessories were related to had been placed before 1-12-1973.

Application :

Not to current assessment years.

Citation :

Finance Act 1974 s.16(c)

Income Tax Act 1961 s.33

Export market development allowance--EXPORT LICENCE FEES, EXPORT FREIGHT CHARGES AND INSURANCE CHARGES

Held :

No weighted deduction is allowable in respect of the said items.--M. H. Daryani v. CIT (1993) 202 ITR 731 (Bom)followed.

Application :

Not to current assessment years.

Citation :

Income Tax Act 1961 s.35B