Manufacturing status for publishing activity was recognised where books were printed through another press, allowing wealth-tax exemption.

A publisher who gets books printed through another press may still be treated as carrying on a manufacturing or processing business for wealth-tax relief, even without owning or operating a press. The Tribunal accepted that direct ownership of printing facilities was not necessary where the publishing activity involved arranging the production of books through third parties, and it relied on the relevant Board circular adopting that view. On that basis, the Wealth-tax Officer was directed to recompute the capital invested in the manufacturing business and allow the exemption available under the statute.

---

---

Issues: Whether a publisher who gets books printed through another press can be treated as carrying on manufacturing business for the purpose of wealth-tax relief and whether the assessee was entitled to exemption on the capital invested in that business.

Analysis: The assessee was engaged in publishing books and had no press of its own. The dispute turned on whether ownership of a printing press or direct operation of the press was necessary to regard the activity as manufacturing. The Tribunal accepted the view that a publisher who arranges for books to be printed by others can still be engaged in manufacturing and processing of goods, and relied upon the Board circular adopting that view. It directed the Wealth-tax Officer to recompute the investment in the manufacturing business in accordance with law and to grant the exemption available under the statute.

Conclusion: The assessee was held entitled to be treated as carrying on manufacturing business, and the claim for exemption was allowed.

---