2000 INSC 0915
                                SUPREME COURT OF INDIA

                                       Commr.of Income Tax

                                                  Vs.

                                     Ratnam Poultry Pvt.Ltd.

                        (S.P.Bharucha, Ruma Pal and S.N.Variava JJ.)

                                             11.08.2000

                                               ORDER

1. Leave granted.

2. Two questions were proposed by the Revenue for reference to the High Court for
consideration. They read thus:

      "1. Whether on the facts and in the circumstances of the case, ITAT was correct
in law in holding that the sale of eggs and birds by the assessee constitutes income of
an industrial undertaking for the purpose of allowing deduction under Sections 80-HH
and 80-I of the IT Act.
       2. Whether on the facts and in the circumstances of the case, ITAT has erred in
law in treating the poultry sheds as `plant' and allowing a higher rate of depreciation."

3. The High Court declined to order the reference and the Revenue is in appeal.

4. The first question is now covered by the decision of this Court inCIT v.
Venkateswara Hatcheries (P) Ltd. The second question may not be so covered. It is,
therefore, appropriate to direct the Income Tax Appellate Tribunal to refer both
questions to the High Court. The High Court may answer the first in the manner stated
above and consider the second question.

5. Accordingly, the civil appeal is allowed. The order under appeal is set aside. The
Tribunal shall now make a reference to the High Court of the two question, set out
above.

6. No order as to costs.