1986 (2) TMI 293

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....) of the Finance Act, 1972, provides : ... (6) For the purposes of this section and the First Schedule. - . . . (c) 'industrial company' means a company which is mainly engaged in the business of generation or distribution of electricity or any other form of power or in the construction of ships or in the manufacture or processing of goods or in mining. Explanation : - . . . (emphasis supplied) The Income-tax Officer, by his order dated November 16, 1976, for the assessment year 1972-73, found that the assessee was liable to be taxed at 65 per cent. and not at the lower rate applicable to an industrial company as defined under the aforesaid provision. In the note to the order, the Officer stated : "Note : The assessee's accou....

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....create certain permanent commitments. The payments made by the assessee towards the processing of the nuts have been made under specific heads, such as roasting wages, peeling wages, shelling wages,etc., as demanded by the factories in which the processing is done. Keeping these facts in view, we consider that the assessee satisfies the condition of being a company engaged in the processing of goods and, accordingly, answers the description of an 'industrial company' within the meaning of section 2(7)(c) of the Finance Act, 1973. The Appellate Assistant Commissioner was, therefore, right in directing the Income-tax Officer to treat the assessee as an 'industrial company' and in taxing it as such." (emphasis supplied) Clause (c) which we ....