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TMI Blog1975 (9) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act, 1922, and, accordingly, the assessee was entitled to exemption in respect of the profits thereof under the said provision ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the press division set up by the assessee was an 'industrial undertaking' within the meaning of section 84 of the Income-tax Act, 1961, and, accordingly, the assessee was entitled to exemption in respect of the profits thereof under the said provision ? " The assessee is a manufacturer of motor cars. In the accounting year, relevant to the assessment year 1957-58, the assessee established a new industrial unit known as " press division " in a new house for the manufacture of " body panels " for the Hindusthan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ws : The assessee used to purchase raw materials from the market for manufacturing its own goods, subsequently, a new manufacturing unit was established by the assessee for producing those raw materials ; and after their production, those raw materials were used in manufacturing goods. At page, 438-439 of the report, it has been said that the expression " business already in existence " used in section 15C(2) of the Indian Income-tax Act, 1922, must necessarily mean and include the purchase of goods in the outside market, for they were used for the business of the assessee, and that it was a part of the business of the assessee to run its business and for that purpose, it was also necessary to get its goods even from outside and, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness already in existence " but the position will be converse if it is an old baby with a new jacket and that the expression " reconstruction of business already in existence " should also be understood from a broad commercial point of view as observed in the decisions cited therein. It is also elementary that no motor car could be manufactured by the assessee if the " body panels " were not purchased previously because the assessee was not a manufacturer of the " body panels " and the assessee could not carry on any business as a manufacturer of motor cars as such. Therefore, instead of purchasing those materials, as the assessee had started a new manufacturing unit for the purpose of manufacturing the " body panels " and for using the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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