Cit Vs. Janta Cold Storage - Court Judgment

Excerpt:
counsels: a.n. mahajan for the assessee shashi kant and rajiv gupta for the revenue head note: income tax deduction under section 80hh--manufacture or productionassessee running cold storageheld: in a cold storage no new commodity comes into existence and since a cold storage is not engaged in the business of manufacturing or processing any article, it is not an industrial undertaking. hence, assessee running a cold storage was not entitled to the benefit of deduction under section 80hh. income tax act, 1961 s.80hh huf or individual income--income from firmheld: assessee claimed income from firms as belonging to huf. the ito treated the income from the said firm as belonging to the assesee in his individaul capacity and not that of huf and accordingly, included the said income and imposed tax. in view of decisions in itr no. 174 of 1981 on 23-2-1999 and itr no. 251 of 1981, dt. 23-2-1999 income from firms was assessable in the hands of the assessee in the status of huf. income tax act, 1961 s.171 in the high court of allahabad r.k. agrawal & prakash krishna, jj. - indian penal code, 1860 [c.a. no. 45/1860]. section 302; [m.c. jain, r.c. deepak & k.k. misra, jj] murder plea as to accused being minor school register and transfer certificate not proved before court according to law held, it has to be ignored and question of age is to be determined on other evidence and circumstances surfacing on record. age determined on the basis of x-ray plates and report prepared by c.m.o., is the correct age of accused. accused was declared to be child on the date of commission of offence of murder. however, considering fact that now accused was around 41 years, he cannot be sent to approved school. accused was directed to pay fine of rs.25,000/- under section 302 i.p.c., amount of fine was directed to be paid as compensation to wife of deceased. mohammad1. the income tax appellate tribunal, delhi, has referred following question of law under section 256(1) of the income tax act, 1961 (hereinafter referred to as 'the act') for opinion to this court:'whether on the facts and in the circumstances of the case, the income tax appellate tribunal was right to cancel the order passed by the commissioner of income-tax under section 263 of the income tax act, 1961, by holding that the process of manufacture was there in the cold storage ?'briefly stated the facts involved in the present case are as under:2. the present reference relates to the assessment years 1981-82 to 1983-84. the respondent-assessee runs a cold storage. it claimed a benefit of deduction under section 80hh of the act which was allowed by the income tax officer. the commissioner of income-tax on an examination of the relevant records came to the conclusion that the deduction under section 80hh of the act was not permissible. he accordingly initiated proceedings under section 263 of the act and after giving an opportunity of hearing to the respondent-assessee had set aside the assessment order to the extent of allowing the benefit under section 80hh of the act. the deduction was withdrawn.3. feeling aggrieved the respondent- assessee preferred separate appeals before the tribunal. the tribunal had held that the respondent-assessee was producing cold air and it is not required that new product should be manufactured for qualifying for deduction under section 80hh of the act. it was of the view that though the chemical composition of the cold air and the normal air which was the raw material for producing the cold air remained the same but the process of manufacture was there though it did not produce a chemical composition whose atomic or integral structure was different. the tribunal accordingly cancelled the order passed by the commissioner under section 263 of the act,we have heard sri an mahajan, learned standing counsel for the revenue, shri shashi kant and shri rajiv gupta have filed their appearance on behalf of the respondent-assessee.4. in view of the decision of the apex court in the case of delhi cold storage (p.) ltd. v. cit : [1991]191itr656(sc) in a cold storage no new commodity comes into existence and a cold storage is not engaged in the business of manufacturing or processing any article, it is not an industrial undertaking and no manufacturing takes place. therefore, deduction under section 80hh of the act was not admissible. the commissioner was right in withdrawing the deduction.5. in view of the foregoing discussion, we answer the question referred to us in negative, i.e., in favour of revenue and against the assessee. however, there shall be no order as to costs.