COMMISSIONER OF INCOME TAX Vs. RALLIS INDIA LTD.

JUDGEMENT

(1.) At the instance of the Commissioner of Income Tax, West Bengal IV, Calcutta, the following question of law for the assessment year 1976 -77, has been referred to this court under Sec. 256(1) of the Income Tax Act, 1961 :

(2.) On appeal by the assessee, the Commissioner of Income Tax (Appeals), after considering the facts of the case, followed the decision of the Madras High Court in the case of CIT v/s. : [1980]122ITR283(Mad) and directed the Income Tax Officer to compute the deduction at 6% of the capital and not to restrict the same with reference to the number of days the unit operated. The matter was brought before the Appellate Tribunal by the Revenue challenging the direction of the Commissioner of Income Tax (Appeals). The Appellate Tribunal noted that it was not disputed that the decision in the case of Simpson and Co. : [1980]122ITR283(Mad) was applicable. It also noted that the Appellate Tribunal, A Bench, Calcutta, in the case of the same assessee has held likewise for the assessment year 1975 -76. The appeal by the Revenue was dismissed.