CIT Vs. MOUNT SHIVALIK BREWERIES LTD

JUDGEMENT

(1.) This order shall dispose of IT Ref. Nos. 22 and 128 of 1997 and IT Appeal No. 86 of 2000 as common questions of law and facts- are involved therein. Being identical matters, the facts are being extracted from IT Ref. No. 22 of 1997.

(2.) On the directions of this Court vide orders dated 15-5-1996 in ITC Nos. 61 to 63 of 1995, the Income Tax Appellate Tribunal, Chandigarh Bench (in short "the Tribunal") has referred the following question of law arising out of its order dated 29-3-1994 in ITA Nos. 463 to 465/Chd/1988, for the assessment years 1983-84 to 1985-86 for its opinion:

(3.) Facts as narrated in the statement of case may be noticed relating to assessment year 1983-84. The Assessee filed its return for assessment year 1983-84 on 29-9-1983 declaring net income of Rs. 49,61,320. The said return was filed late by two months. The Assessee is manufacturing country liquor and beer. The assessing officer passed assessment order on 30-8-1985 allowing investment allowance at Rs. 2,11,867. The claim of the Assessee for deduction under Section 80-I was disallowed. The Assessee filed an application before the assessing officer under Section 154 and made three claims, i.e. with regard to the disallowance of interest under Section 40A(5); disallowance on account of rest-house expenses; and deduction under Section 80-I of the Act. The assessing officer vide order dated 10-12-1985 allowed the said application and deleted the disallowance on account of rest-house expenses to the tune of Rs. 67,250 besides allowing deduction of Rs. 27,824 under Section 80-I of the Act. Accordingly, the revised income was computed at Rs. 50,32,830.