1989 (9) TMI 41

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....on of law raised in this reference is " Whether, on the facts and in the circumstances of the case, the assessee is engaged in "manufacture or processing of goods within the meaning of section 104 (4) of the Income-tax Act, 1961 ?" The assessee-company runs a hotel. The proceedings relate to its assessment year 1967-68. The assessment was made under section 143 on a total income of Rs. 94,98....

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....be liable to the additional tax under section 104. It is in this con text that the question arose whether the assessee's case was or was not covered by the provisions of section 104 (4) of the Act. The departmental authorities as well as the Tribunal, on the basis of the Kerala High Court decision in the case of CIT v. Casino (Pvt.) Ltd. [1973] 91 ITR 289, held that the assessee was not a compa....

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....Kerala High Court decision. Section 104(4), as it then stood, covered companies whose business, inter alia, consisted mainly of the manufacture or processing of goods. The Explanation to section 104(4) by a legal fiction, provided that if the income of the company from such activities was 51 % or more of its total income, the income of the company shall be deemed to consist mainly of that type.....