TaxTMI 
TaxTMI 
1981 (8) TMI 10
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....s referred to us, reads as under: "Whether, on the facts and in the circumstances of this case, the Tribunal was right in law in holding that the assessee was entitled to relief under section 84/80J of the Act in respect of the 4th kiln at Sikka for the assessment years 1,964-65 and 1970-71 ? " The facts which are relevant to this question are as follows. The assessee-company was granted a licence for substantial expansion of its establishment at Sikka for manufacture of Portland cement. It was granted licence to set up a 4th kiln for such expansion. The assessee-company already had three kilns and the fourth kiln was set up for manufacture of Portland cement. The assessee-company invested about Rs. 1.08 crores in the installation of ....
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....T v. Indian Aluminium Co. Ltd. [1977] 108 ITR 367. In the instant case before us, there was substantial expansion when the assessee-company installed a fourth kiln. Production capacity of cement was increased by two lakh tonnes. There was, therefore, substantial increase in the production of the assessee-company as a result of the installation of a fourth kiln. The evidence on record discloses that various machineries independent of the existing machineries were installed along with installation of the fourth kiln. As held by the; Supreme Court in the case of Textile Machinery Corporation Ltd. [1977] 107 ITR 195 (SC), which was a case of s. 15C of the Indian I.T. Act, 1922 in order to be entitled to benefit under s. 84/80J, following facts ....
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....om January 1, 1966, at the behest of the Government. The cement manufacturers, formed a voluntary Organisation known as " Cement Allocation and Co-ordination Organisation to ensure smooth implementation of cement decontrol., scheme for equitable distribution for consumers throughout the country., CACO framed schemes for fixation of prices and distribution of cement, which were binding on its members. CACO operated various trust accounts and the amounts received from its members were utilised for equalising price, freight and other differentials on pro rata has is. The assessee-company paid Rs. 1,85,983.32 and Rs. 17,536 in the assessment years 1968-69 and 1969-70, respectively, to CACO by way of its contribution. The Tribunal reversing the ....
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....tingent liability in the hands of the assessee as the same was ascertained and adjusted in the accounts of the assessee with the 'CACO' and is, therefore, not liable to be assessed in the hands of the assessee and/or was allowable as business expenditure ?" In the assessment year 1969-70, the assessee's share from CACO worked out to Rs. 2,61,986.44. The assessee-company, however, credited a sum of Rs. 8,410 in its accounts after making adjustments of certain amounts. One of the amounts which was adjusted against the aforesaid share of Rs. 2,61,986.44, was Rs. 2,15,418.17 for provision for " liability to S.T.C. towards likely deficit in cement agency account of S.T.C.". It was contended on behalf of the assessee-company that the liability....