1996 (2) TMI 83

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....UR C. J.---This is an income-tax reference under section 256(1) of the Income-tax Act, 1961, at the instance of the assessee and the following questions of law have been referred by the Tribunal for answer by this court : " 1. Whether, on the facts and circumstances of the case, the Tribunal was justified in holding that there was mistake apparent from the record rectifiable under section 154 o....

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.... The Perfect Sanitary Pipes, Bharatpur unit of the assessee was engaged in manufacturing and production of sanitary ware, which is a prohibited item under the Eleventh Schedule to the Income-tax Act, as item No. 16. He also observed that the assessee was not a small-scale industrial undertaking. Therefore, the provisions of section 32A(2)(b)(ii) of the Act were not attracted. According to the Insp....

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.... was not controverted before it, since it was clear from the depreciation chart of the unit on record that the value of the machinery and plant installed in the unit was worth more than Rs. 10 lakhs. The Tribunal further observed that item No. 16 in the Eleventh Schedule mentioned "Table ware and sanitary ware". The assessee is a manufacturer of sanitary pipes. As such, no investment allowance cou....

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.... the issue. In the present case, the mistake was apparent that the unit was not a small-scale industrial unit and investment in the unit was more than Rs. 10,00,000. Therefore, from this admitted position, it was apparent that it was not a small-scale industrial unit under section 32A(2)(b)(ii) of the Act, because the total valuation of the unit was more than Rs. 10,00,000. Therefore, this mist....