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TMI Blog1983 (3) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... e imposed tax thereon at the usual rate of income-tax. The assessee appealed to contend that the assessee was to be treated as an industrial company and, therefore, the tax should be imposed at the concessional rate. The assessee relied on the decisions of the High Courts in the cases of CIT v. N.C. Budharaja Co. [1980] 121 ITR 212 (Ori.) and National Projects Construction Corpn. Ltd. v. CWT [1969] 74 ITR 465 (Delhi) and of the Tribunal in the cases of Ahuja Kashyap (P.) Ltd. [IT Appeal Nos. 1407-1413 of 1974-75, dated 7-4-1977, Delhi Bench ' B '], Bajaj Industrial Finance Ltd. [IT Appeal No. 904 (Delhi) of 1979, dated 31-5-1980, Indore Bench] and of the Madras Bench ' C ' in IT Appeal No. 44 (Mad.) of 1980, dated 15-11-1980. The Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are concerned with the definition of ' industrial company ' in section 2(7)(c) of the Finance Act, 1978, which is in the following terms : " ' 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. " We are concerned here with the expression ' mainly engaged in the manufacture or processing of goods '. The question is whether the assessee which is engaged in the construction of flats could be considered to be mainly engaged in the manufacture or processing of goods. The answer to the question is self-evident and has to be in the negative. The word ' good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... processing of goods. On behalf of the assessee, it was contended that the word ' construction ' appearing in the definition may be connected to the word ' goods ' as was done by the Madras Tribunal, an extract of which has been given by the Commissioner (Appeals) in his order. Apart from the fact that decision related to a different section, namely, section 32A, and not to the definition under the Finance Act, we find that in the present definition of ' an industrial company ' the manufacture or processing of goods is a distinct sub-clause different from the earlier sub-clause relating to construction of ships and, therefore, the word ' construction ' can by no stretch of imagination be attached to or qualify the word ' goods ' so as to re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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