MAHABIR COLD STORAGE versus COMMISSIONER OF INCOME TAX, PATNA

MAHABIR COLD STORAGE versus COMMISSIONER OF INCOME TAX, PATNA

The appellant, being a newly constituted firm and not a successor in interest of the old firm, is not entitled to development rebate under section 33(1) as it did not satisfy the requirement of ownership and continuity under the Act.

Parties
Appellant Assessee: Mahabir Cold Storage; Respondent Revenue: Commissioner of Income Tax, Patna
Jurisdiction
India
Judgment Date
07 December 1990
Procedural Posture
Civil Appeal / Appeal From Judgment and Order of Patna High Court
Outcome
Appeal dismissed
Legal Topics
Development Rebate, Ownership of Capital Assets, Business Succession, Assessment Under Income Tax Act
Income Tax Tax Law Development Rebate Ownership of Capital Assets Business Succession Assessment Under Income Tax Act

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Parties

Mahabir Cold Storage

Appellant Assessee

Commissioner of Income Tax, Patna

Respondent Revenue

Procedural Posture

Civil Appeal / Appeal From Judgment and Order of Patna High Court

Legal Issues

  1. 1 Entitlement to development rebate under section 33(1) of the Income Tax Act, 1961 by newly constituted partnership firm
  2. 2 Unity of ownership and use of asset in business for development rebate
  3. 3 Succession and separate assessable identity in income tax law

Ratio Decidendi

The appellant, being a newly constituted firm and not a successor in interest of the old firm, is not entitled to development rebate under section 33(1) as it did not satisfy the requirement of ownership and continuity under the Act.

Court Disposition

Appeal dismissed

Orders

  • Reference answered in favour of Revenue and against assessee
  • Appellant not entitled to development rebate under section 33(1) of Income Tax Act, 1961