Statutory relief for profits from specialised wire manufacture upheld on factual findings about its industrial use.

Super-enamelled copper wire was treated as a basic material used in electrical generators, motors and transformers, and as a component of equipment for electricity generation and transmission. On the Tribunal's factual findings, the super-enamelling made the wire suitable for that specialised use and not for other purposes. The challenge that the assessee itself was not engaged in manufacture was not entertained because it had not been raised before the Tribunal in that form, and the factual findings were not disturbed in reference proceedings. On that basis, the product fell within the relevant statutory descriptions and the assessee was entitled to the claimed relief.

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Issues: Whether the assessee was entitled to rebate or deduction on its share of profits from the firm manufacturing super-enamelled copper wire under the relevant Finance Act provisions, the Companies (Profits) Surtax Act, 1964, and section 80E of the Income-tax Act, 1961.

Analysis: The Tribunal had found, on the material before it, that super-enamelled copper wire was a basic material used in electrical generators, motors and transformers, that it constituted a component part of equipment for generation and transmission of electricity, and that the super-enamelling made the wire fit for such use and not for other purposes. The challenge that the assessee itself was not engaged in manufacture was not entertained because the question had not been raised before the Tribunal in that form. The challenge to the factual findings as unsupported by evidence was also rejected, since the findings were based on material on record and could not be disturbed in reference proceedings. On that factual foundation, the product manufactured by the firm fell within the relevant statutory descriptions.

Conclusion: The assessee was held entitled to the claimed relief, and the references were answered against the Revenue.

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