1987 (5) TMI 29

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....ferred to as " the Act"). The question referred to us for our opinion is as follows: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal has rightly held that the business of the firm, M/s. Bharat Stone Works, Bokaro Steel City, is an " industrial undertaking " within the meaning of the Explanation to section 5(1)(xxxii) of the Wealth-tax Act, 1957, an....

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....ers and crushing them to small pieces did not involve any manufacturing or processing of goods or mining. The assessee appealed against the order of the Wealth-tax Officer. The Appellate Assistant Commissioner by a consolidate order accepted the plea of the assessee holding that the activity of the assessee was a mining/manufacturing process. An appeal by the Revenue before the Appellate Tribunal ....

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....erred to in any other clause of this sub-section) forming part of an industrial undertaking belonging to the assessee. Explanation.-For the purposes of this clause and clause (xxxii), the term 'industrial undertaking' means an undertaking 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 proc....

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....ing process. The firm being engaged in manufacturing processes, it must be held that the firm was an " industrial undertaking ". That being so, the interest of the assessee in the firm had to be exempted. The Appellate Assistant Commissioner and the Tribunal were justified in holding that the interest of the assessee was exempted in terms of section 5(1)(xxxi) and (xxxii) of the Act in the net wea....