COMMISSIONER OF INCOME TAX Vs. RELCO PRIVATE LIMITED

JUDGEMENT

(1.) Tax Case (Appeal).Nos. 371 of 2005, 1225 and 1226 of 2008 are filed at the instance of the Revenue as against the order of Income Tax Appellate Tribunal for the assessment years 1995-96, 1993-94 and 1996-97 respectively. The above Tax Case Appeals were admitted on the following substantial questions of law:-

(2.) As far as Tax Case (Appeal).No. 131 of 2006, filed at the instance of the Revenue as against the order of Income Tax Appellate Tribunal for the assessment year 1997-98 is concerned, in addition to the above two questions of law, the following question of law also arose for consideration:-

(3.) The facts relating to the case herein are that the assessee company was recognized as 100% Export Oriented Unit (EOU) by the Government of India and started its commercial production, with effect from 4.9.1989. It is stated by the Assessing Officer that by December 1989, the assessee company became sick. Consequently, it entered into memorandum of understanding with a foreign collaborator, to work on their behalf on job work basis; with the result, the assessee started its earlier business and went ahead with the new business in the manufacture of films and export of thick film revistors, chip resistors etc.