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2000 PTD 3672

COMMISSIONER OF INCOME-TAX vs FATESINHJI GINNING, PRESSING AND

Citation2000 PTD 3672
CourtGujarat High Court
Judge(s)A. R. Dave, R. K. Abichandani
ResultApplication rejected

1. The Revenue has made these applications suggesting the following question common to all these matters and requesting for a direction on the Tribunal to forward the statement of case under section 256(2) of the Income Tax Act, 1961: "Whether the Appellate Tribunal is right in law and on facts in directing the Assessing Officer to treat the assessee-company as an industrial company when the assessee was engaged in the business of ginning and processing of cotton?"

2. A similar question had arisen in respect of the same assessee in Income-tax Reference No. 10 of 1979. A Division Bench of this Court, by its judgment and order, dated March a, 1986, decided the question in the affirmative and against the Revenue following an earlier decision of this Court in CIT v Lakhtar Cotton Press Co. (Pvt.) Ltd. (1983) 142 ITR 503. In that decision, it was held that, where loose cotton in bulk quantity with lighter density was, as a result of pressing, converted into cotton bales and to that extent it underwent a change, the assessee-company fell within the definition of an industrial company, because it processed cotton into cotton bales and was entitled to the concessional rate of tax as provided under the law. <p.m></p.m> revisions by the competent authorities. Therefore, it is advisable to consult the official sources or legal professionals for the most up-to-date and accurate information.

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