2010 (12) TMI 958

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....dran for the Respondent   JUDGEMENT   R. Jayasimha Babu:   Investment allowance for the assessment year 1983-84 was denied to the assessee, a manufacturer of aerated waters under the brand name of 'TORINO', such manufacturing activity having been carried on under a licence, on the ground that the aerated waters manufactured by it contained blended flavouring concentrates. T....

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....mployed. The interaction of two or more ingredients is capable of being broadly viewed as blending. Synthetic essences, therefore, are clearly blended flavouring concentrates.   3. Learned counsel for the assessee, however, submitted that a learned single Judge of this Court has, in a case concerning the same assessee, held that synthetic essence is not a blended flavouring concentrate. Ou....

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....eventh schedule to the Income-tax Act contains a list of articles and things for the manufacture or production of which machinery is installed which would not be eligible for grant of investment allowance. Item No.5 in that eleventh schedule reads thus:-   "Aerated waters in the manufacture of which blended flavouring concentrates in any form are used."   An Explanation was added t....

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....tive intent, with a view to counteracting the tax avoidance and placing the matter beyond doubt, the proposed amendment seeks to provide that the blended flavouring concentrate appearing in item 5 would include synthetic essence in any form."   6. Learned counsel for the assessee emphasised the fact that this amendment took effect from 1st April, 1988, and submitted that for the purpose of....