Law: Income Tax Act, 1922

Section: 15B(7),15B(3)

Law: Income Tax Act, 1922

Section: 15B(7),15B(3)

Income-tax Act, 1922 -- Section 15B(7) -- Industrial undertaking -- Exemption -- Textile mill -- Weaving machinery plant installed in the same premises where spinning plant was working -- Weaving section, whether independent, separate and different industrial undertaking -- Held yes -- Whether entitled to exemption independent of spinning section -- Held yes -- "Industrial undertaking" -- Question whether each and every addition to an industrial undertaking would itself amount to an "industrial undertaking" entitled to relief under S. 15-B {Quaere} -- Company, engaged in manufacture of textile goods, at first setting up plant for manufacture of cotton yarns -- Later a weaving section set up for manufacture of cloth from cotton yarns -- Company, in circumstances, entitled to relief separately under S. 15-B with respect to weaving section -- JUDGMENT [The judgment of the court was delivered by NOORUL ARFIN J.].---The following question has been stated to this court by the Income-tax Appellate Tribunal:-- Whether on the facts and in the circumstances of the case the Tribunal was justified in holding that the expansion of the textile mill by putting weaving section is a separate industrial undertaking within the meaning of sub-section (7) of section 15B of the Income-tax Act? The assessee is a limited company engaged in the manufacture and sale of textile goods. It set up first a spinning plant for the manufacture of cotton yarn, Later, that is, in June, 1954, the assessee set up a weaving section for the manufacture of cloth from cotton yarn. The question is whether the assessee is entitled to relief separately under Section 15B of the Income-tax Act, 1922, with respect to the weaving section. The assessee has placed reliance on sub-sections(1) (3) and (7) of Section 15B of the Income-tax Act, 1922, which read as under:-- 15B (1). Subject to the provisions of this section, there shall be exempt from the tax payable under this Act, so much of the profits and gains derived from any industrial undertaking to which this section applies as do not exceed an amount computed with reference to the capital employed in the under taking as hereinafter provided. 15B(3). The…

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