1996 (1) TMI 390

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....tly denied exemption under section 4-A of the U.P. Trade Tax Act simply on the ground that one of the directors of the petitionercompany owned the existing unit, namely, M/s. Agra Oil and General Industries, Naraich, Hathras Road, Agra, which is engaged in the manufacture of oil. Admitted facts are that the existing unit-M/s. Agra Oil and General Industries, Naraich, Hathras Road, Agra, engaged....

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....same is reproduced hereunder: "(ii) On or adjacent to the site of an existing factory or workshop manufacturing any other goods, but does not include- (1) any factory or workshop manufacturing the same goods established by a person on or adjacent to the site of an existing factory or workshop wherein such person has interest as proprietor or a partner or agent or promoter or holding company ....

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..........Sri Shanti Swarup Goyel, director of the petitioner-company has interest in an existing old unit manufacturing the same goods and in view of provisions of section 4-A of the Act, as amended by the U.P. Act No. 28 of 1991, the petitioner is not entitled to exemption". Simply because one of the directors of the petitioner-company happened to be the proprietor of the existing unit, can the p....

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....ns the owner of the new unit and if a new unit has interest in the existing unit, then alone the former will be disentitled to exemption. In the instant case, not the petitioner-company (new unit) has interest in the existing unit, but only one of the directors of the petitioner-company has interest in the existing unit, since the existing unit is owned by the said director. Since the petitioner-c....