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Issues:
1. Denial of relief under s. 5(1)(xxxii) of the WT Act to the assessee. 2. Interpretation of the term "industrial undertaking" under s. 5(1)(xxxii) of the WT Act. 3. Whether the assets must belong to the firm directly for claiming relief under s. 5(1)(xxxii) of the WT Act. Detailed Analysis: 1. The assessee filed appeals against the orders of the AAC denying relief under s. 5(1)(xxxii) of the WT Act. The firm, in which the assessee was a partner, was engaged in buying grey cloth and selling it after processing by another company. The WTO held that relief under s. 5(1)(xxxii) was only available if the assets used for manufacturing and processing belonged to the firm directly. The AAC upheld the denial of relief, stating that the firm was not directly involved in manufacturing or processing activities. The Tribunal was tasked with determining the eligibility of the assessee for relief under s. 5(1)(xxxii) of the WT Act. 2. The Tribunal considered the definition of "industrial undertaking" under s. 5(1)(xxxii) of the WT Act. It was established that the relief was available for assets forming part of an industrial undertaking owned by the firm in which the assessee was a partner. The Tribunal referred to relevant case laws, including the Supreme Court and Calcutta High Court decisions, to support the interpretation that the firm did not need to directly manufacture the processed cloth to qualify as an industrial undertaking. The Tribunal agreed with the assessee's argument that buying grey cloth and selling it after processing constituted manufacturing activity, as supported by legal precedents. 3. The key issue was whether the assets used for manufacturing and processing needed to be owned directly by the firm for claiming relief under s. 5(1)(xxxii) of the WT Act. The Tribunal held that it was sufficient if the assets were owned by the firm conducting the business, and direct ownership by the assessee was not mandatory. The Tribunal emphasized that the capital of the firm constituted the assets in question for claiming relief. The Tribunal's decision was based on the clear provisions of s. 5(1)(xxxii) and the interpretation provided by previous court judgments, supporting the assessee's entitlement to relief despite not owning the assets directly. In conclusion, the Appellate Tribunal, ITAT BOMBAY-D, allowed the assessee's appeals, ruling in favor of the assessee's eligibility for relief under s. 5(1)(xxxii) of the WT Act. The Tribunal clarified that ownership of assets by the firm, rather than the assessee directly, sufficed for claiming relief under the provision. The decision was supported by legal precedents and interpretations of the term "industrial undertaking" as per relevant court judgments.
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