G. RAVEENDRAN Vs. THE COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) Aggrieved by the order of the Tribunal in dismissing the appeal filed by him, the appellant is before this Court by filing the present appeal. This Court vide order dated 3.3.2005, admitted the appeal on the following substantial question of law:-

(2.) The brief facts, which are relevant for considering the present case, are set out as hereunder:-

(3.) It is the further case of the appellant that he has rich experience in design, development and commissioning of Industrial Drives, power electronic equipments, such as High Power Battery Chargers and UPS Systems. He has proficiency in Design, Development and Commissioning of Drives in Core Industries such as Paper Mills, Rolling Mills, Sugar Plants, Cement Plants, etc. It is the further stand of the appellant that he also acquired proficiency in high power charging equipments to be used by Baba Atomic Research Centre, National Thermal Power Corporation, etc. Similarly, he also gained expertise and proficiency in commissioning of High Power UPS Systems in Customs Dept., Texas Instruments, Dalmia Cements, etc. The proficiency acquired by the appellant in Industrial Drives is put to use in industries where large motors are used for production purposes. Since the power of these motors vary between few kilowatts to 100's of kilowatts, for the purpose of controlling those motors, the appellant/assessee, using his expertise, designed and implemented power electronic controls to drive the motors. These Power Electronic Converters (for short 'PEC') are called Industrial Drives. The Industrial Drive System, according to the appellant, is a specialized equipment involving power system, electronic control system and automation system using Programmable Logic Controller (for short 'PLC') and application oriented software. The Industrial Drive System enhances the production efficiency and also results in energy saving. The Industrial Drives, otherwise known as Power Electronic Converters, are widely used in all varieties of industries to provide for optimum use of power and efficiency in production.