1996 (5) TMI 25

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....ill dispose of three Income-tax Cases Nos. 61 to 63 of 1995 in which common questions of law and fact arise. For the sake of convenience, facts are being taken from Income-tax Case No. 61 of 1995. This petition has been filed by the Commissioner of Income-tax, Patiala, under section 256(2) of the Income-tax Act, 1961 (for short "the Act"), for a direction to the Income-tax Appellate Tribunal, Cha....

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....llowance under section 32A and deduction under section 80-I when the machinery was being used for manufacturing or production of any articles specified in the Eleventh Schedule of the Income-tax Act, 1961 ?" The following additional question of law was claimed in Income-tax Case No. 62 of 1995 : " Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was r....

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.... Act, it was necessary for it to maintain separate books of account and also show that it has set up a new industrial unit. The Commissioner found that no separate account books had been maintained by the assessee in regard to its spirit bottling plant at Chandigarh and that there was no manufacturing activity involved in the bottling plant. According to the Commissioner, the basic conditions for ....

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.... it got converted into rum, whisky and brandy. According to the Tribunal in market parlance, rectified spirit is not the same thing as rum, brandy or whisky and, therefore, it held that the assessee was engaged in manufacturing activity so as to be entitled to the relief under sections 32A and 80-I of the Act. The appeal filed by the assessee was consequently allowed. The Revenue filed an applicat....