JUDGMENT :

R.K. Agrawal, J.

Civil Appeal Nos. 6949-6950 of 2004

1. Leave granted.

2. These appeals have been filed against the impugned judgment and order dated 29.01.2003 passed by the High Court of Judicature at Bombay in R.A.No.1561 (Bom)/1982 and R.A.No.5161/B/80 whereby the Division Bench of the High Court while giving answers to the Reference Applications filed by the Respondent as well as the Revenue, confirmed certain findings passed by the Income Tax Appellate Tribunal (in short ‘the Tribunal’) dated 16.08.1982 in favour of the Respondent. Along with this, there are certain other connected appeals also. Since the question of law is same in all these appeals, all the appeals would stand disposed off with this common judgment.

3. Brief facts:-

(a) For the proper appreciation of the issue in the case at hand, we deem it apposite to mention the gist of the facts. The appellant herein is the Department of Income Tax (for brevity ‘the Revenue), on the other hand, respondent herein is Mahindra & Mahindra Ltd. (for brevity ‘the Respondent’) - a company registered under the Companies Act, 1956.

(b) The Respondent, way back, decided to expand its jeep product line by including FC-150 and F