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Judgment
S. Rajendra Babu, J.-The petitioner is a Co-operative Society engaged in the manufacture of cotton yarn. The petitioner claimed benefit of the Government Order dated 30-6-1969 read with the order dated 26-11-1971. The respondent denied the claim made by the petitioner on the ground that clause (5) of the notification issued on 25-11-1971 would come in the way of granting any concession to the petitioner. The said clause reads as follows:
"The concessions and incentives offered by Government from time to time shall be given only to units engaged in industrial products. No concession shall be given in respect of industrial units where the Government investment is 50% or more in the form of either share capital or loan or both together".
The concession and incentives offered by the Government would be available to units engaged in industrial products. However, such concession cannot be given if the industrial unit has an investment made by the Government to an extent of 50% or more by way of share capital or loan or both together. For the different years, the total share capital and the Government share capital is as follows:
"Year Total share capital Government share capital
Year ending 30-6-1974 1[12,00,00,400.00] 80,00,000.00
- do - 30-6-1975 1,20,00,600.00 80,00,000.00
- do - 30-6-1976 1,22,70,100.00 82,50,000.00
- do - 30-6-1977 1,22,98,100.00 82,50,000.00
- do - 30-6-1978 1,22,98,700.00 82,50,000.00"
The total investment under land, building and plant and machinery for each of the year is as follows:
"The concessions and incentives offered by Government from time to time shall be given only to units engaged in industrial products. No concession shall be given in respect of industrial units where the Government investment is 50% or more in the form of either share capital or loan or both together".
The question for consideration is whether the investment would mean investment by way of share capital or loan and not otherwise. So far as investments are concerned what is envisaged in the notification is investment either by share capital or loan or both together. In the present case though share capital can be ascertained, if it is a case of loan in what manner the investment will have to be found out becomes very difficult. That loan cannot be 50% of the share capital. Therefore, the proper investigation to be made is what is the total investment made by the unit in its plant and machinery and business to find out whether the investment made by the Government either by way of loan or share capital exceeds 50%. Therefore, the order made by the Tribunal shall stand set aside and the matter shall stand remitted to the Assessing Authority for fresh consideration. Petition allowed.