https://www.taxtmi.com/caselaws?id=64209 Section 104 relief for industrial or mining companies depends on the gross total income including positive income from the qualifying manufacturing, processing or mining activity, and that income forming at least 51 per cent of the total. Where brought-forward losses and unabsorbed depreciation reduce the qualifying activity's income to nil, the statutory exception does not apply and levy under section 104 remains attracted. A plea that inadequate profits or lack of distributable surplus should defeat the levy was rejected on the facts because the company had substantial free reserves and no weak liquid position. The tax rate, however, had been wrongly applied as for an investment company and required correction. en-us Sat, 02 Apr 1988 00:00:00 +0530 Sat, 05 Feb 2011 14:19:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64209 Section 104 relief for industrial or mining companies depends on the gross total income including positive income from the qualifying manufacturing, processing or mining activity, and that income forming at least 51 per cent of the total. Where brought-forward losses and unabsorbed depreciation reduce the qualifying activity's income to nil, the statutory exception does not apply and levy under section 104 remains attracted. A plea that inadequate profits or lack of distributable surplus should defeat the levy was rejected on the facts because the company had substantial free reserves and no weak liquid position. The tax rate, however, had been wrongly applied as for an investment company and required correction. Case-Laws Income Tax Sat, 02 Apr 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64209