Capital investment threshold under trade tax exemption law supported full notification benefit for the assessee

Full exemption under section 4A of the U.P. Trade Tax Act was justified where the amended eligibility certificate showed fixed capital investment of Rs. 106.85 crores, bringing the unit within the notification providing 100 per cent exemption above the prescribed threshold. On that factual foundation, the Tribunal's view that the assessee qualified for the benefit of Notification No. 1093 dated 27.07.1991 was supported by the record, and no substantial question of law arose for interference. The exemption was therefore correctly allowed in favour of the assessee, and the revision could not succeed.

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Issues: Whether the assessee was entitled to full exemption under section 4A of the U.P. Trade Tax Act, 1948 for the relevant assessment year and whether the Tribunal's order granting the benefit of Notification No. 1093 dated 27.07.1991 called for interference.

Analysis: The amended eligibility certificate showed that the industry had made a fixed capital investment of Rs. 106.85 crores, which brought it within the ambit of the notification conferring 100 per cent exemption for units with investment above the prescribed threshold. On that factual basis, the Tribunal's conclusion that the assessee was entitled to the benefit of the notification was supported by the record, and no substantial question of law arose for reconsideration.

Conclusion: The exemption was rightly allowed in favour of the assessee, and the revision was not liable to succeed.

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