TaxTMI 
TaxTMI 
1983 (4) TMI 41
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....e assessee is an 'industrial company' within the meaning of section 2(7)(d) of the Finance Act, 1966 ? (2) Whether the Tribunal's view that the assessee-company which is running a group of hotels is engaged in the manufacturing or processing of goods' within the meaning of section 2(7)(d) of the Finance Act is sustainable in law and on the materials on record ? " The assessee-company is running a group of hotels in the city of Madras. In the course of the assessment for the first three years, the assessee-company claimed that it should be treated as an industrial company and assessed at 55% of its income and not at 65% applicable to non-industrial company. The ITO, however, brought 65% of the assessee's income to charge treating it as....
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....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, if the income attributable to any of the aforesaid activities included in its total income for the previous year is not less than fifty-one per cent. of such total income. " As per the said definition, a company whose main business is manufacture or processing of goods will be an industrial company. The Explanation shows that a company can be taken to be mainly engaged in the business of manufacture or processing of goods if the income attributable to any of the aforesaid activities is not less than fifty-one per cent. of the total income in the previous year. The T....
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.... defined in the said Act stated that: the absence of a definition necessarily means that Parliament has intended that the term should be understood in ordinary or common parlance. The learned judges referred to the fact that the said term or almost similar terms have been subject of discussion in a number of judicial decisions but those decisions gave only a limited assistance on the construction of the terms in the Finance Act, 1968, which would depend on the context of the enactment, the context or setting in which the term appears and that the nature of an enactment is of considerable relevance in understanding the meaning of the term used thereon. The learned judges thereafter proceeded to construe the said term with reference to the co....
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....ther eatables in the kitchen will fall within the definition of " manufacturing process ", for, it satisfied the test of making or altering or otherwise trading, adapting any article or substance with a view to its use, sale or disposal. Thus, it will be seen that it is by virtue of the said definition of " manufacturing process" contained in s. 2(k) of the Factories Act, a hotel or restaurant where foodstuffs are prepared has been treated as a factory within the precincts of which a manufacturing process is carried on. The same view has been taken by the Andhra Pradesh High Court in P. Lakshman rao and Sons v. Addl. Inspector of Factories, AIR 1959 AP 142. However, the question is whether those decisions which were rendered with reference ....
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.... the term in one statute affords a guide to the construction of the same term in another statute and the sense in which the term has been understood in the several statutes does not necessarily throw any light on the manner in which the term should be understood generally. On the other hand it is a sound, and indeed, well known principle of construction that meaning of words and expressions used in an Act must take their colour from the context in which they appear." Thus, it is clear that the words used in a statute must take colour from the objects of the Act and it cannot be taken to have a uniform meaning in whatever statute it occurs. We are, therefore, of the view that the decision rendered in New Taj Mahal Cafe Ltd. v. Inspector o....