1980 (3) TMI 177

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....t allowed by the ITO. 3. The assessee came in appeal before the AAC and referred the decision of the Tribunal for the asst. yrs. 1974-75 and 1975-76. However, the AAC respectfully disagreed with the view of the Tribunal and, consequently, negatived the claim of the assessee. 4. The issue is squarely covered by the decision of the Tribunal in WTA Nos. 26 & 27 (Pat)/ 1977-78 in the case of the assessee for the asst. yrs. 1974-75 and 1975-76. The Tribunal allowed the appeal in favour of the assessee on this issue. The Tribunal has observed as follows in the aforesaid order:- " 6. We have considered the facts of the case and we are of the view that considering the order of the Tribunal for the earlier years the value of the factory bui....

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....ly even though there is an order from the higher authority. If the order of the Tribunal was not acceptable, the other courses were open for the lower authorities, but it was not fair to disagree with the order of the Tribunal when the facts were not different. However, following the earlier order of the Tribunal the assessee is allowed relief of Rs. 75,000 under s. 5(i)(iv) of the WTA, 1957 5. The assessee during the asst. yr. 1976-77 claimed exemption for old and new machineries of Rs. 54,000 and Rs. 18,500 under s. 5(1)(xxxii) of the Act. Similar claim for the asst. yr. 1977-78 was made for Rs. 1,11,020. The WTO did not allow the claim of the assessee but, on appeal, the AAC following the order of the Tribunal in WTA Nos. 26 & 27(Pat)....

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....illing paddy and changing it into edible rice whereas oil mills are engaged in manufacturing oil out of oil seeds. The claim of the assessee is, therefore, accepted to the extent of the assessee's ownership of these machineries and the value of the machineries is excluded from the taxable wealth of the assessee for both the years". 7. The AAC is perfectly justified to exclude the amount of machineries following the aforesaid order of the Tribunal and the order of the AAO on this issue maintained. 8. The last objection of the Department for the asst. yr. 1977-78 is that the AAC was not justified to allow a relief of Rs. 74,417. The assessee was having interest in M/s Sagar Rice & Oil Mills and M/s Dhanraj Sagarmall. The assessee transf....