S.C : The sale of eggs & birds by the assessee constitutes income of an industrial undertaking for the purpose of allowing deductions under ss. 80HH and 80-I of IT Act.

Supreme Court Of India

CIT vs. Ratnam Poultry (P) Ltd.

Section 256(2)

S.P. Bharucha, Mrs. Ruma Pal & S.N. Variava, JJ.

Civil Appeal No. 4554 of 2000

11th August, 2000

ORDER

BY THE COURT :

Leave granted.

2. Two questions were proposed by the Revenue for reference to the High Court for consideration. They read thus :

“1. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the sale of eggs & birds by the assessee constitutes income of an industrial undertaking for the purpose of allowing deductions under ss. 80HH and 80-I of IT Act.

(2) Whether, on the facts and in the circumstances of the case, the Tribunal has erred in law in treating the poultry sheds as ‘Plant’ and allowing a higher rate of depreciation.” The High Court declined to order the reference and the Revenue is in appeal.

3. The first question is now covered by the decision of this Court in CIT vs. Venkateswara Hatcheries (P) Ltd. (1999) 153 CTR (SC) 105 : (1999) 237 ITR 174 (SC). The second question may not be so covered. It is, therefore, appropriate to direct the Tribunal to refer both questions to the High Court. The High Court may answer the first in the manner stated above and consider the second question. Accordingly, the civil appeal is allowed. The order under appeal is set aside. The Tribunal shall now make a reference to the High Court of the two questions, set out above. No order as to costs.

[Citation : 248 ITR 15]

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