1980 (1) TMI 73

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....by SETHURAMAN J.--The following three questions have been referred by the Tribunal under s. 256(1) of the LT. Act : " 1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the centrifugal pumps and motors constitute agricultural implements ? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was r....

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....I.T. Act, 1961. The ITO negatived the contention by holding that the centrifugal pumps and electric motors manufactured by the assessee did not constitute agri cultural implements within the meaning of item (9) of the Fifth and Sixth Schedules. On appeal, the AAC accepted the assessee's claim and when the matter came before the Tribunal at the instance of the ITO, the Tribunal confirmed the order ....

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....on would have to hold good with reference to entry (9) in the Fifth and Sixth Schedules to the I.T. Act as it also uses the identical expression " agricultural implements ". The first two questions are accordingly answered in the affirmative and in favour of the assessee. The third question arises on the following facts and it relates to the assessment year 1970-71. The assessee offered to subs....

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....d that the purchase of these bonds was intended to subserve a business purpose, namely, the retention of the goodwill of the Govt. which was with to the well being of every business concern. It was also found that the purchases were made not with the intention that the securities should be retained as income-yielding investments, but with a view to dispose of them as quickly as possible in order t....