Mining activity includes overburden removal for lignite exposure, supporting industrial company status under the tax definition.

Removal of overburden and excavation to expose lignite was treated as an integral part of mining, so the assessee's activity fell within the statutory meaning of mining under section 2(7)(c) of the Finance Act, 1982. It was not necessary that the company also undertake processing of goods. On that basis, the assessee qualified as an industrial company and the tax benefit was allowed, with recomputation directed accordingly.

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Issues: Whether the assessee, engaged in removal of overburden and excavation for exposing lignite in a mine, was engaged in mining so as to qualify as an industrial company under section 2(7)(c) of the Finance Act, 1982.

Analysis: The definition of industrial company covered a company mainly engaged, inter alia, in mining. The work undertaken consisted of removing the earth layer above lignite to reach the mineral for further mining. Such removal was treated as an integral part of mining activity, and it was not necessary that the assessee should also be engaged in processing of goods.

Conclusion: The assessee was engaged in mining and was therefore an industrial company within section 2(7)(c) of the Finance Act, 1982. The claim for tax benefit was allowed and the matter was remitted for recomputation accordingly.

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