1980 (10) TMI 29

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....as the calendar year, with the result that the relevant previous year for the assessment year 1957-58 would be from 1st January, 1956, to 31st December, 1956. The assessee manufactures springs and spring leaves of various sizes and dimensions for use in commercial and passenger motor vehicles and also manufactures certain accessories. The records of the ITO showed that the assessee started production in the year 1951 which was the relevant previous year to the assessment year 1952-53. The ITO declined to give to the assessee the benefit of the exemption under s. 15C of the said Act on the ground that under sub-s. (6) thereof the said relief was admissible only for five successive assessment years commencing with the assessment year in the p....

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....al production, it would amount to manufacture. " From this decision of the Tribunal, the following question has been referred to us for our determination: " Whether, on the facts and in the circumstances of the case, the assessee-company was entitled to the relief under section 15C for the assessment year 1957-58 ? " Mr. Mehta, the learned counsel for the assessee, has strongly disputed the view of the Tribunal that even the commencing of trial production amounts to manufacture for the purpose of sub-s. (6) of s. 15C of the said Act, and has relied upon the decision of a Division Bench of this court in CIT v. Hindustan Antibiotics Ltd. [1974] 93 ITR 548. In that case, the assessee-company undertook a project for the manufacture of ....