1998 (2) TMI 34

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....owing question has been referred : "Whether, on the Tribunal's view that the assessee had commenced its business during the previous year relevant to the asst. yr. 1973-74 and that it is entitled to the loss to be computed, is sustainable in law?" The assessment year is 1973-74. The business in which the assessee is engaged is the manufacture of cadmium sulphide photo cells based on a proces....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... can be regarded as having commenced. 2. That view of the ITO not having found favour with the AAC, the matter was sent back by him to the ITO, after holding that the firm had commenced production in that year 1973-74. The Department carried the matter to the Tribunal. Its contention was that the assessee on the facts found could not be said to have commenced. business and was, therefore, disse....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....to when a business is set up. The setting up of plant and machinery and commencement of production are the material factors for deciding as to whether as business has commenced. 4. In this case on the facts found, the assessee had set up the unit after installing the requisite plant and machinery, and had commenced the production but before the end of the relevant accounting year, it had been u....