Allahabad H.C : Whether, on the facts and in the circumstances of the case, the Tribunal was justified in deleting the addition of Rs. 5,000 made by the ITO being personal expenses as premium paid by the assessee-company for accident insurance of the directors and of Rs. 9,000 being provision for conveyance for directors under s. 40(c) r/w s. 40(5) of the IT Act ?

High Court Of Allahabad

CIT vs. Modi Industries Ltd.

Section 256(2)

K.C. Agrawal, Actg. C.J. & R.K. Gulati, J.

IT Appln. No. 326 of 1988

5th July, 1989

Counsel Appeared

Bharatji Agrawal, for the Revenue : R.K. Agrawal, for the Assessee

BY THE COURT:

We have heard Sri Bharatji Agrawal, learned senior standing counsel for the Revenue, and also Sri R. K. Agrawal, counsel appearing for the assessee. After having considered the judgments supplied to us by learned counsel for the assessee and hearing both the sides, we are of the opinion that the following are statable questions of law :

” (1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in deleting the addition of Rs. 5,000 made by the ITO being personal expenses as premium paid by the assessee-company for accident insurance of the directors and of Rs. 9,000 being provision for conveyance for directors under s. 40(c) r/w s. 40(5) of the IT Act ?

(2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in directing allowance of the assessee-company’s claim in respect of the 10 Ton Furnace Division under s. 80J when the furnace was merely am extension of the existing steel ‘ A ‘ Unit and not a separate independent unit by itself ?

(3) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that development rebate at higher rate of 35per cent was admissible in relation to the steel unit of the assessee- company or not only the cost of machinery installed in the furnace section, but also on the mill and wire drawing section within the meaning of s. 33(1)(b) and items Nos. I and II of the Fifth Schedule of IT Act, 1961 ?

(4) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in deleting the addition of Rs. 1,84,726 made by the ITO on account of excess price realised on the sale of sugar ?

(5) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in allowing the deduction of Rs. 1,85,396 on account of development rebate on new electric fittings in the factory area ?”

2. Consequently, we call upon the Tribunal to send a statement of the case with regard to the above questions for the opinion of the High Court.

[Citation :180 ITR 249]

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