ASSTT. C.I.T. Vs. EMTICI ENGINEERING LTD.

JUDGEMENT

(1.) BOTH these Tax Appeals involve common questions on law and therefore, they are decided by this common judgment. In these Tax Appeals u/s. 260A of the Income -tax Act, 1961 challenge is made to the common judgment and order passed by the Income Tax Appellate Tribunal, Ahmedabad Bench in ITA No. 4692/AHD/1989 & 4914/AHD/1989 whereby, the appeal filed by the assessee was partly allowed and that of the Revenue was dismissed.

(2.) BRIEFLY stated, the facts are that the assessee -company is having three divisions, one is the trading division where the assessee is acting as a selling agent of Elecon Engineering Company Ltd. and Power Build Ltd. It is acting as Distributors for Eimco Elecon (I) Ltd. The assessee -company is having written agreements with all the three companies. It is also having a division known as Kanisha Steel, which is in the field of manufacturing steel castings used by Elecon Engineering Co. Ltd. and other allied concerns. So far as the third division is concerned, it is known as Trupti Castings, which is engaged in the manufacturing activity. The manufacturing activity of said Trupti Castings has been suspended and the premises as well as machineries have been let -out to allied concerns. The assessee -company holds substantial investment in the forms of shares of Elecon Engineering Company Ltd. and other companies of the group, viz. Power Build Ltd., Eimco Elecon (I) Ltd., etc.

(3.) WHILE admitting the appeal on 06.12.2000, the following substantial question of law was formulated for our consideration;