Court grants petitioner's request, quashes orders, issues mandamus for tax certificates.

The court granted the petitioner's request to quash previous orders refusing certificates under section 32A(2B)(ii) of the Income Tax Act, 1961. It issued a writ of mandamus directing the respondents to grant certificates for the assessment years 1979-80 to 1983-84 and to admit and take on record the certificates for investment allowance at a higher rate of 35%. The court found that the petitioner met the necessary conditions under section 32A(2B) by acquiring the right to use the technology and using it in the production process, leading to the relief sought being granted.

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Issues Involved:
1. Quashing of previous orders refusing certificates under section 32A(2B)(ii) of the Income Tax Act, 1961.
2. Issuance of a writ of mandamus for granting certificates for the assessment years 1979-80 to 1983-84.
3. Issuance of a writ of mandamus to admit and take on record the certificates and grant investment allowance at a higher rate of 35%.

Detailed Analysis:

Issue 1: Quashing of Previous Orders Refusing Certificates
The petitioner sought the quashing of orders dated 10.10.1979, 21.01.1980, and 18.05.1985, which refused to issue certificates under section 32A(2B)(ii) of the Income Tax Act, 1961. The orders were based on the reasoning that while the technology developed by CECRI was for the manufacture of Titanium Substrate Insoluble Anodes (TSIA), the petitioner was only using TSIA for manufacturing caustic soda, which was not covered under section 32A(2B). The court found this reasoning flawed, noting that CECRI developed both the technology to manufacture TSIA and the process for using TSIA in the production of caustic soda. Therefore, the petitioner was indeed using CECRI's technology as intended.

Issue 2: Issuance of Writ of Mandamus for Granting Certificates
The petitioner requested a writ of mandamus directing the respondents to grant certificates under section 32A(2B)(ii) for the assessment years 1979-80 to 1983-84. The court examined the technology and process developed by CECRI and concluded that the petitioner was entitled to the certificates. The technology developed by CECRI was a composite one, covering both the manufacture of TSIA and its use in producing caustic soda. The court found that the petitioner had acquired the right to use this technology from TEAM, which was licensed by NRDC, satisfying the conditions under section 32A(2B).

Issue 3: Issuance of Writ of Mandamus to Admit Certificates and Grant Higher Investment Allowance
The petitioner also sought a writ of mandamus directing the respondent No.3 to admit the certificates for the relevant assessment years and grant an investment allowance at a higher rate of 35%. The court noted that the petitioner had complied with the necessary conditions under section 32A(2B), including acquiring the right to use the technology from TEAM and employing it in the production of caustic soda. Therefore, the court directed the respondents to issue the appropriate certificates, which the petitioner could then present to the income tax authorities for the higher investment allowance.

Conclusion:
The court concluded that the petitioner was entitled to the certificates under section 32A(2B) and the higher investment allowance. The impugned orders were set aside, and the respondents were directed to issue the appropriate certificates. The writ petition was allowed, and the petitioner was granted the relief sought.

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