1990 (6) TMI 106

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....he case are these : The assessee is a Pvt. Ltd. company. Its accounting year relevant for assessment year 1982-83 ended on30-6-1981. The assessee derives income from the business of manufacture and sale of tyre retreading plants. The assessee had claimed deduction under section 80-I of the Income-tax Act by way of a letter dated7-2-1985addressed to the assessing officer. The Income-tax Officer, however, did not deal with the claim of the assessee while completing the assessment on11-2-1985. The application under section 154 filed by the assessee was. also rejected by the Income-tax Officer vide his order dated24-9-1985. The assessee preferred a quantum appeal before the Commissioner of Income-tax (Appeals) who also rejected the assessee's c....

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....culars issued contrary to the provisions of the law were bad because no Rule-making authority could circumvent, distort, abridge or whittle down the clear and unambiguous provisions of the law. It was also pointed out that the circular referred to by the learned counsel for the assessee was not a benevolent circular. 6. We have considered the rival submissions as also the facts on record. Previously the "tax holiday provisions were contained in section 80-J of the Income-tax Act which were applicable in relation to new industrial undertakings which went into production before1st April, 1981. Finance (No. 2) Act, 1980 inserted a new section 80-I which applied in relation to new industrial undertakings which were set up after31-3-1981. Sub....

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....tarted production during the previous year ending30-6-1980relevant to the assessment year 1981-82. The present assessment which relates to assessment year 1982-83 represented the second year of the commencement of the manufacturing business. It is, therefore, clear that the manufacture or production of article or thing in the instant case was not begun on or after1-4-1981. This condition has, therefore, not been fulfilled by the assessee. 7. The Board's Circular relied upon by the learned counsel for the assessee does not say that it will be applicable to assessment year 1981-82 even if the conditions contained in sub-section (2) of section 80-I were not fulfilled. In fact paragraph 19.3 of the said Circular clearly states as follows :--....