TaxTMI 
TaxTMI 
2004 (10) TMI 39
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....663/Ind of 1998: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in allowing the development rebate on plant and machinery for which agreement to supply was entered into on December 28, 1973?" The facts in so far as they are relevant and stated in the statement of case drawn by the Tribunal may be taken note of in brief. The assessee is a private limited company. It was incorporated on September 7, 1973. It is engaged in the business of manufacture of oil and oil cakes, extraction of hydrogenated oil and deoiled cakes. The assessment year involved in this reference is 1975-76, the relevant accounting year of which ended on December 31, 1974. The assessee commenced its business opera....
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....ue. Heard Shri R.L. Jain, learned counsel for the applicant and Shri S.C. Goyal, learned counsel for the non-applicant. Having heard learned counsel for the parties and having perused the record of the case, we are of the view that this reference has to be answered in favour of the Revenue and against the assessee. In other words, the question referred to this court has to be answered in favour of the Revenue and against the assessee. As observed supra, the question that arises for consideration in this reference is, whether on the facts found and referred to this court, can it be held that the assessee is entitled to claim development rebate on plant and machinery for which agreement to supply was entered into on December 28, 1973....
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....ure of such machinery or plant." A mere perusal of section 16(c) quoted supra would make it manifest that in order to claim development rebate on plant/machinery installed after May 31, 1974, but before June 1, 1975, after the issuance of the notification dated May 28, 1971, it is obligatory upon an assessee to furnish evidence to the satisfaction of the Income-tax Officer that before December 1, 1973, he had either purchased such plant/machinery or had entered into a contract for purchase of such machinery/plant with its manufacturer/owner/dealer. So what is material and decisive is the date December 1, 1973. The question referred to this court specifically mentions the date of agreement entered into by the assessee with the manufact....
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.... is mentioned in the question itself. In this view of the matter, we have to proceed on the basis for answering the question that there was only one agreement entered into by the assessee with the manufacturer for supply of plant and machinery on December 28,1973. We cannot take into consideration any other date of agreement even if it existed as contended by learned counsel for the assessee for answering the reference. Learned counsel for the assessee then contended that the view taken by the Tribunal by placing reliance on section 46 of the Companies Act deserves to be upheld being in accordance with the Companies Act. According to learned counsel when the promoter of a company had already entered into an agreement prior to its incorpo....