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TMI Blog2002 (10) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee is a private limited company carrying on the business of running a chain of hotels in Coimbatore and the Income-tax Officer in the original assessment made on the assessee for the assessment year 1986-87, treated the company as a non-trading company and levied the tax at the rate of 55 per cent. Thereafter, he resorted to rectification proceedings under section 154 of the Income-tax Act and treated the company as a trading company and levied the tax at the rate of 60 per cent. The assessee challenged the order of rectification by filing an appeal before the Commissioner of Income-tax (Appeals) and the Commissioner of Income-tax (Appeals) upheld the order of the Assessing Officer in the light of the decision of this court in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that though he instructed the Department to forward a copy of the order, the Department has not furnished a copy of the earlier order. When the court directed the Department to submit a copy of the order of the Appellate Tribunal, the Department should have produced the same. We record our strong displeasure towards the attitude adopted by the Income-tax Department in not furnishing a copy of the earlier order of the Tribunal, even when it was so directed by the court. We also make it clear that in future such lapse will be viewed with more seriousness. As far as the merits of the case are concerned, it depends upon the interpretation of section 2(7)(g) of the Finance Act, 1986 which reads as under: "'trading company' means a co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings is concerned, the case dealt with the definition, "industrial company" within the meaning of section 2(7)(d) of the Finance Act, 1966. Though this court has dealt with the case of a hotel, this court was not considering the question whether the said hotel should be treated as a trading company or a non-trading company, and hence, the decision of this court in Buhari Sons Pvt. Ltd.'s case [1983] 144 ITR 12 has no application to the facts of the case. We have also gone through the Finance Act, 1986 and in the classification of companies, "trading company" finds a place and we do not find any classification as an "industrial company". Therefore, the decision of this court in Buhari Sons Pvt. Ltd.'s case [1983] 144 ITR 12 has no applicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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