Industrial undertaking exemption applies to dyeing and printing firms, making a partner's share exempt from wealth-tax.

A partner's share in firms engaged in dyeing and printing cloth was held exempt from wealth-tax because those firms constituted industrial undertakings within the Explanation to section 5(1)(xxxii) of the Wealth-tax Act, 1957. The activity of dyeing and printing was treated as processing of cloth, and processing of this nature fell within the expression "industrial undertaking". The facts were materially similar to an earlier decision applying the same view, and no distinguishing feature was shown, so the exemption was available.

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Issues: Whether the assessee's share in partner-firms engaged in dyeing and printing of cloth was exempt from wealth-tax under section 5(1)(xxxii) of the Wealth-tax Act, 1957.

Analysis: The reference turned on whether the firms constituted industrial undertakings within the Explanation to section 5(1)(xxxii). The activity of dyeing and printing cloth amounts to processing, and a firm engaged in such activity falls within the expression "industrial undertaking". The facts were materially similar to an earlier decision where the same view had been taken, and no distinguishing feature was shown.

Conclusion: The assessee's share in the firms was exempt from wealth-tax under section 5(1)(xxxii) of the Wealth-tax Act, 1957.

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