PATHANGE POULTRY FARM Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Bangalore, has referred to us the following two questions for our opinion in terms of section 256(1) of the Income-tax Act, 1961 :

(2.) BEFORE we address ourselves to the legal position on the subject, a few facts relevant to the disposal of this reference may first be noticed

(3.) THE view taken by the Income-tax Officer was affirmed by the Commissioner to Income-tax (Appeals), Bangalore, by his order dated August 30, 1985, holding that the assessee necessarily purchased a number of cages to set up a common unit, with common facilities for lighting, feeding, watering, etc., for the birds housed in the same. THE Commissioner was of the opinion that it was more reasonable to treat the whole unit as one single machinery rather than taking each small cage as a separate plant by itself.