TaxTMI 
TaxTMI 
1977 (7) TMI 44
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....ith the following objects : " To acquire, purchase and carry on the business of Kopran Chemical Company now carried on by Ramanlal V. Shah at 18, 3rd Pasta Lane, Colaba, Bombay-5. and accordingly to enter into and carry into effect with or without modification an agreement with the said Ramanlal Vadilal Shah in the terms of the draft which has for the purpose of identification been initialled by the subscribers to the memorandum and articles of association." By an agreement dated December 18, 1958, the assessee purchased, stock-in-trade and raw materials of Kopran Chemical Co. from its proprietor, Ramanlal Vadilal Shah. Kopran Chemical Company was manufacturing tooth-paste only. The assessee-company sold away stocks of tooth-paste tak....
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....alue of Rs. 4,500 remained idle and was not used by the assessee company in its business of manufacture of pharmaceutical goods. Production of pharmaceutical goods was started by the assessee-company on August 27, 1958, while the rotary tablet machine of the value of Rs. 19,601 was purchased by the assessee-company from Lovely Products on November 18, 1958, i.e., nearly three months after the commencement of the production. It was the case of the assessee-company that the reconditioned tablet making machine of the value of Rs. 2,987 purchased from Kilburn & Co. Pvt. Ltd., even though it was old, was not used in any business. On these facts having regard to the provisions of section 15C of the Indian Income-tax Act, 1922, the assessee-compan....
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....2, in respect of its industrial undertaking ? " Mr. Joshi on behalf of the revenue submitted that the Tribunal was in error in coming to the conclusion that the assessee was entitled to the benefit of the provisions of section 15C of the Act. His submission is that the industrial undertaking started by the assessee-company was formed by transfer to a new business of part of machinery or plant which was used in a business which was being carried on before April 1, 1948, and he, therefore, submitted that in such a case, clause (i) of sub-section (2) of section 15C has no application and the assessee-company is not entitled to the benefit of the said section. Section 15C provides for exemption from tax of newly established industrial und....
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....making machine of the value of Rs. 2,987 from M/s. Kilburn & Co. Pvt. Ltd. 3. Rotary tablet machine of the value of Rs. 19,601 from M/s. Lovely Products. Out of the machinery of the value of Rs. 7,000 purchased from R.V. Shah of Kopran Chemical Company, the assessee-company sold away mixing machine and the electric motor of the value of Rs. 2,500 in the preceding accounting year ending March 31, 1959. According to the assessee the remaining machinery of the value of Rs. 4,500 remained idle and was not used by it for its business purposes. The case of the assessee that the remaining machinery of the value of Rs. 4,500 was not used for the purposes of business has been accepted by the Appellate Assistant Commissioner as well as by the Trib....