Construction and sale of flats is not treated as an industrial company for tax-rate purposes under the Finance Act, 1976.

A company engaged in constructing buildings and selling flats in multi-storeyed commercial buildings was held not to be an "industrial company" under section 2(9)(c) of the Finance Act, 1976 for rate-of-tax purposes. The Court applied binding precedent that construction of buildings does not fall within the relevant statutory expression, and extended that principle to the assessee's business model of construction and sale of flats. The question was answered in the negative, in favour of the Revenue.

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Issues: Whether a company engaged in the construction and sale of flats in multi-storeyed commercial buildings is an industrial company within the meaning of section 2(9)(c) of the Finance Act, 1976 for the purpose of the applicable rate of tax.

Analysis: The issue was covered by binding precedent holding that a company engaged in the business of constructing buildings cannot be regarded as an industrial company within the scope of the relevant provision. The Court applied that precedent to the assessee's business of construction and sale of flats in commercial buildings.

Conclusion: The assessee-company is not an industrial company under section 2(9)(c) of the Finance Act, 1976. The question was answered in the negative and in favour of the Revenue.

Ratio Decidendi: A company engaged in the construction of buildings and sale of flats does not fall within the expression "industrial company" under section 2(9)(c) of the Finance Act, 1976.

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