Film production as an industrial undertaking supported section 80J relief, with no referable question of law arising.

Producing cinematographic films was treated as an industrial undertaking for section 80J relief because the activity was regarded as involving manufacture or processing, and the CBDT circular treating film production as industrial in nature was relied on as binding on the department. The Tribunal also viewed the assessee's activity as a factual matter rather than a pure question of law. On that basis, no referable question of law was found and the proposed reference was declined.

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Issues: Whether the activity of producing cinematographic films constituted an industrial undertaking for the purpose of relief under section 80J of the Income-tax Act, 1961, so as to warrant reference of the proposed question of law.

Analysis: The assessee's claim for section 80J relief was accepted by the appellate authority and sustained by the Tribunal on the basis that film production involved manufacture or processing, and on the strength of the CBDT circular treating such activity as industrial in nature. The Tribunal also proceeded on the footing that the circular was binding on departmental and that the conclusion turned essentially on the factual character of the assessee's activity.

Conclusion: The activity of producing cinematographic films was treated as an industrial undertaking, but the Court declined to refer the proposed question because no referable question of law arose.

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