Cut-off date for term-loan application under trade tax exemption accepted where earlier bank application was corroborated and unrebutted.

An assessee qualified for exemption under Section 4-A of the U.P. Trade Tax Act, 1948 because the term-loan application was made before the cut-off date. The court accepted the 5.1.2000 application as the relevant request for financial assistance, and treated the later 1.5.2000 application as a separate filing by the proprietor in an individual capacity, not by the firm. The bank certificate corroborated the earlier application, and there was no evidence to disprove it. Rejection based on the absence of a dispatch number or non-mention in the exemption application was held unsustainable because such detail was not required and the certificate was not shown to be false.

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Issues: Whether the assessee had applied for term loan to the bank on or before the cut-off date so as to qualify for exemption under Section 4-A of the U.P. Trade Tax Act, 1948.

Analysis: The disputed date of the term-loan application was ined by comparing the two applications on record. The application dated 5.1.2000 showed a request made by the assessee for financial assistance before the cut-off date, while the later application dated 1.5.2000 was found to be a separate application in the individual capacity of the proprietor and not the assessee firm. The bank certificate corroborated the 5.1.2000 application, and there was no evidence to disprove it. The rejection based on absence of dispatch number or non-mention in the exemption application was held to be unsustainable, as the relevant column did not require disclosure of such detail and the certificate was not shown to be false.

Conclusion: The assessee had applied for term loan on or before the cut-off date and was entitled to exemption under Section 4-A of the U.P. Trade Tax Act, 1948.

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