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TMI Blog1986 (3) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 5(1)(xxxii) of the Wealth-tax Act, 1957? " In this reference, we are concerned with the assessment year 1973-74. The assessee is an individual. She (for, the assessee is a lady) had invested large amount in a firm, M/s Vishnu Cold Storage. The value of her holdings was to the tune of Rs. 1,50,000. The Wealth-tax Officer intended to include the value of her holdings in the cold storage for the purpose of reckoning her liability under the Act. The assessee contended that her interest in the cold storage was not liable to be included in terms of section 5(1)(xxxii) of the Act. The Wealth-tax Officer rejected her claim. She, however, succeeded before the Appellate Assistant Commissioner and the Appellate Tribunal. Hence, the referenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness 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." The command of the law in terms of clauses (xxxi) and (xxxii) is that " industrial undertaking " means an undertaking engaged in the business of processing of goods besides other matters. In this case, we are not concerned with " the business of generation or distribution of electricity nor with the construction of ships or in the manufacture of goods or mining ". It is patent that the expression " industrial undertaking " in clause (xxxi) must include processing of goods. The cold storage is engaged in storing potatoes. It has, therefore, to be seen whether by virtue of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C 675 (C. Sess), where it had been observed at page 685: " The word 'process' in its ordinary connotation seems to me to mean no more than the application of a method of manufacture or adaptation of goods or materials towards a particular use, purpose or end, while 'to subject' means no more than to treat in some manner or other." Their Lordships of the Allahabad High Court emphasised that the expression " processing " was different in content than the word " manufacture ". After referring to authoritative excerpts from Webster's New International Dictionary, Words and Phrases Legally Defined, volume 4, in Encyclopaedia Britannica, volume 9, pages 543 and 545, Agricultural Engineers Hand Book at page 741 by C. B. Richey and Fruit Culture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harji J. in the cases referred to above. Learned counsel for the Revenue relied upon CST v. Harbilas Rai and Sons [1968] 21 STC 17 (SC) and contended that a cold storage is not involved in processing of goods. We regret, the reliance placed upon this case is misplaced. That was a case where the meaning and expanse of word " manufacture " fell for consideration. As to the expanse of the word " processing ", it did not fall for consideration in that case. In that case, their Lordships were considering the impact of section 2(h) of the U. P. Sales Tax Act, 1948, which had Explanation II to it. In that Explanation, it was stated that notwithstanding anything in the Indian Sale of Goods Act, 1930, the sale of any goods which are produced or man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is an "industrial undertaking". It has, therefore, to be excluded from the computation of net wealth of ail assessee. It was not necessary for the Tribunal to have mentioned in the question referred to us whether cold storage was a plant, but since that word has been mentioned in the question referred to us, we are of the view that a cold storage is a plant and comes under an industrial undertaking. As such, it is entitled to statutory exemption as provided under section 5(1)(xxxii) of the Wealth-tax Act, 1957. For the reasons stated above, the question referred to us is answered in the affirmative, in favour of the assessee and against the Revenue. The reference is thus answered with costs payable to the assessee. Hearing fee Rs. 250. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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