1991 (3) TMI 82

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....llate Tribunal has referred the following question to this court for its decision under section 256(1) of the Income-tax Act, 1961, at the instance of the Commissioner of Income-tax, Bombay. This question reads as under : "Whether, on the facts and in the circumstances of the case, the activity of the assessee of producing cinematograph films is an 'industrial undertaking' for the purpose of de....

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....he hearing of the said appeal, the assessee relied, inter alia, on Circular No. 24, dated July 23, 1969, issued by the Central Board of Direct Taxes. By the said Board's circular, it was notified by the Board that the production of cinematograph films amounted to manufacture or processing of goods within the meaning of section 104 (4) (a) of the Income-tax Act, 1961. It was also stated in the said....

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....ubject to the assessee satisfying the other conditions also. Being aggrieved by the said order, the Department filed a second appeal before the Income-tax Appellate Tribunal. The Tribunal examined the matter in further depth. The expression "industrial undertaking" has not been defined in the Income-tax Act, 1961. The Tribunal applied the normal commercial meaning of the words "industrial undertak....

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....t think it necessary to refer to various judgments or discuss the matter in any greater detail. Dr. Balasubramaniam, learned counsel for the Revenue, has fairly admitted that the above-referred circular is still operative and is being given effect to for the purpose of applying section 104(4)(a) of the Income-tax Act, 1961. Section 104 (4) (a) reads as under : "104. (4) Without prejudice to ....