TaxTMI 
TaxTMI 
1997 (11) TMI 12
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....ompany within the meaning of s. 2(6)(c) of the Finance Act, 1971, and it was not entitled to concessional rate of tax? 2. This tax case reference relates to the asst. yrs. 1978-79 and 1979-80. The point that is in issue, which is common for both the assessment years, is whether the assessee can be regarded as an industrial company within the meaning of s. 2(6)(c) of the Finance Act, 1971. It is not necessary to burden the judgment with the factual details as the assessee's own case for the asst. yrs. 1974-75, 1976-77, 1977-78 and 1971-72 came up for consideration before the Supreme Court in Chillies Exports House Ltd. vs. CIT (1997) 140 CTR (SC) 1 : (1997) 225 ITR 814 (SC) : TC S24.2478 wherein the Supreme Court found that the assessee in....
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....of the enquiry and the line of the enquiry to be conducted to ascertain whether the assessee-company can be regarded as an industrial company what is as under : "The ultimate conclusion as to whether the assessee was carrying on the business of processing of goods would depend upon the consideration of all relevant materials available in the case. The Madras High Court has eschewed from consideration one important activity carried on in the matter, namely, the activity relating be fumigation by the treatment with methyl bromide on the ground that it was done by another 'Mysodet (P) Ltd., Bangalore, on behalf of the assessee. That is an irrelevant or immaterial factor. The sole question is, whether on a consideration of the totality of the....
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....ake it marketable or marketable in the export market-a sensitive market. These and other considerations require proper evaluation an indepth analysis and assistance from technical persons may be required to ascertain how far and to what extent the various activities carried on, by the assessee to render the chillies purchased locally as one of export quality can be termed as 'carrying on the business of processing of goods'. The entire matter requires a second look. A better investigation into the different activities carried on by the assessee which resulted in making the goods fit for export and how far the cumulative effect of those activities will amount to the processing of goods should be arrived at in the light of the various decisio....