TaxTMI 
TaxTMI 
1991 (9) TMI 1
X X X X Extracts X X X X
X X X X Extracts X X X X
....f manufacturing chemical products. The memorandum of association of the respondent-company, as is apparent from the order of the Appellate Assistant Commissioner of Income-tax, inter alia, contains the following clause (See [1977] 110 ITR 151, 159) : "to carry on the business of manufacture of and dealers and importers and exporters in chemical products of any nature and kind whatsoever and particularly of carboxy-methyl-cellulose (CMC), cellulose pulp and other chemical products." The respondent was granted an industrial licence by the Central Government for the manufacture of sodium-carboxy-methyl-cellulose (for short "CMC"). In pursuance of the said licence, the respondent installed a cellulose plant in which was manufactured cellulose....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Income-tax Appellate Tribunal. The respondent's contention that the production of cellulose pulp during the month of March, 1961, was a trial production was repelled by the Tribunal and a categorical finding was recorded by it that cellulose pulp manufactured by the respondent during the month of March, 1961, was a finished product which was a marketable commodity. On this view, the Tribunal held that the respondent having begun production or manufacture of a finished product which was capable of being sold in the market in the year of account relevant to the assessment year 1961-62, the last year in which the respondent was entitled to get relief under section 84 of the Act was the assessment year 1965-66 and the claim made by it for the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d it was not open to the High Court in its advisory jurisdiction to take a contrary view. For the respondent, on the other hand, in support of the judgment appealed against, it was urged by its learned counsel that inasmuch as section 84 of the Act contemplated grant of relief to a new undertaking, it should be construed liberally so as to effectuate the object thereof. He maintained that since the undertaking established by the respondent was to manufacture CMC and the industrial licence had also been granted to it only for the said purpose, exemption under section 84 of the Act could be claimed by it only in the year during which CMC was actually manufactured and since it was so done during the assessment year 1962-63, exemption could not....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the Tribunal, after considering the evidence produced before it on a question of fact, records its finding, it cannot be interfered with in a reference by the High Court unless of course such finding was not supported by any evidence, was perverse or patently unreasonable. In our opinion, the finding of the Tribunal in the instant case did not suffer from any of these infirmities. The finding that the production of cellulose pulp during the month of March, 1961, was not a trial production and that cellulose pulp as manufactured by the respondent was a finished product which was a marketable commodity was essentially finding of fact based on appraisal of evidence. It is true that cellulose pulp constitutes raw material for manufacture of CM....
X X X X Extracts X X X X
X X X X Extracts X X X X
....factured. The decision of the Madras High Court relied on by learned counsel for the respondent reported in Madras Machine Tools Manufacturers Ltd. v. CIT [1975] 98 ITR 119, in view of what has been observed above on the facts of the instant case, does not advance the case of the respondent any further than the reasons recorded in the judgment under appeal. As regards the alternative submission made by learned counsel for the respondent, suffice it to say that the case on the basis of which this alternative submission is sought to be made was not set up before the Tribunal nor was any such question sought to be referred on the basis of which this alternative submission could be made. It cannot, as such, be permitted to be made in the prese....