Hotel business under section 104 required factual proof of manufacturing or processing activity, but the record was insufficient.

The Bombay High Court could not determine whether the assessee's hotel business fell within the category of a business mainly consisting of manufacture or processing of goods for section 104(4) of the Income-tax Act, 1961. The record did not disclose the nature or extent of the restaurant and allied activities, so there was no sufficient factual basis to decide whether the company was covered by the statutory exclusion from additional tax under section 104. The question was therefore left unanswered on the available material.

---

---

Issues: Whether the assessee's hotel business could be treated as business mainly consisting of manufacture or processing of goods within the meaning of section 104(4) of the Income-tax Act, 1961.

Analysis: The assessment year in question involved levy of additional tax under section 104 on the footing that the assessee-company was not covered by section 104(4). The material on record did not indicate the nature or extent of the assessee's restaurant and allied activities, and there was no sufficient factual basis to determine whether the company's business mainly consisted of manufacture or processing of goods.

Outcome: The question could not be answered on the available record and was returned unanswered.

---