TaxTMI 
TaxTMI 
1994 (11) TMI 8
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....th produced by others amounted to manufacture or production of textiles as specified under item No. 21 of the List in the Ninth Schedule of the Income-tax Act, 1961, so as to entitle it to additional depreciation under section 32(1)(vi) of the Act ? " The assessee is a limited company incorporated under, the provisions of the Companies Act, 1956. The assessment years involved are 1976-77 and 1977-78. The assessee was engaged in the business of dyeing, printing and processing textile goods and for that purpose, the assessee used to purchase grey cloth and sell the same on its own account after dyeing, printing and processing. The assessee was also doing job work of dyeing, printing and processing on grey cloth belonging to others. The cla....
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....In the assessment year 1976-77, the assessee had installed a boiler in respect of which the assessee claimed initial depreciation under section 32(1)(vi) of the Act contending that processing of textiles is covered under the said item No. 21 of the List mentioned in Ninth Schedule to the Act. Under section 32(1)(vi) of the Act, the assessee was entitled to deduction of depreciation in respect of the said boiler installed for the purpose of business of the assessee, subject, however, to section 34 of the Act provided the assessee manufactured textiles as specified in the said item No. 21. The said item No. 21 in the List of articles or things mentioned in the Ninth Schedule to the Act reads as follows : " 21. Textiles (including those dye....
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....ies Ltd. v. Union of India [1986] 162 ITR 846 (SC) ; and (4) CIT v. Yavatmal Co-operative Ginning and Pressing Factory Ltd. [1993] 203 ITR 874 (Bom). Dr. Balasubramaniam, learned counsel for the Revenue, has submitted that the assessee had merely printed the textile goods already manufactured by others and, as such, in the facts of the case, the assessee could not be said to be engaged in the manufacture or production of textiles within the meaning of clause (vi) of sub-section (1) of section 32 of the Act read with the said item No. 21 in the Ninth Schedule to the Act. Since under section 32(1)(vi) of the Act, what is required is to manufacture or produce any one or more of the articles or things specified in items Nos. 1 to 24 (b....
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....is capable of no two interpretations. In a taxing act, as observed by Rowlatt J. in Cape Brandy Syndicate v. IRC [1921] 1 KB 64, one has to look merely at what is clearly said. There is no room for any intendment. There is no equity about a tax. There is no presumption as to a tax. Nothing is to be read in, nothing is to be implied. One can only look fairly at the language used. We feel, a judge must not alter the material of which the Act is woven though he can and should iron out the creases. In view of wordings of section 32(1)(vi) and the said item No. 21, it is not possible for us to hold that the assessee, by applying the process of printing or dyeing on the grey cloth admittedly manufactured by others carried on the business of manuf....
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....eady in existence ; (iii) that it was not formed by the transfer to a new business of machinery or plant previously used for any purpose ; and (iv) that it manufactured or produced articles. The controversy considered was in the context of meaning of clause (iii) of sub-section (4) of section 80J of the Act. The question considered was whether the undertaking of the assessee therein was an industrial undertaking and whether any articles were manufactured or produced therein. It was in this context, the Gujarat High Court held that when the assessee subjected grey cloth to the process of dyeing and printing, the assessee carried on manufacturing activities within the meaning of clause (iii) of sub-section (4) of section 80J. In the present c....