COMMISSIONER OF INCOME TAX Vs. SENAPATHY WHITELEY LIMITED

JUDGEMENT

(1.) THIS is a reference under section 256(1) of the Income-tax Act, 1961 ("the Act"). The Tribunal has referred the following question;

(2.) THE assessee is a company carrying on business in the manufacture of electrical insulation boards, insulating press boards and multiple press paper used for insulation purposes in transformers, motors, etc. THEse products go by the trade name "kheddahide". In the assessment year 1975-76, the company while filing a return of income of Rs. 30,21,630 made a claim for initial depreciation under section 32(1)(vi) of the Act relating to additions to plant and machinery after May 31, 1974, in the business of manufacturing insulation boards. This claim was based on the ground that the products manufactured fall under item 18 in Schedule IX of the Act. Item 18 in Schedule IX reads;

(3.) THE sole question, therefore, is whether the insulation boards which the assessee is manufacturing under the trade name "kheddahide" could be called paper within the purview of item 18 in Schedule IX to the Act.