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TMI Blog1981 (9) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... 9, which represented expenditure in the nature of pre-operative expenditure incurred before the air-conditioning plant and machinery of the cinema theatre were commissioned as per the assessee's own statement in ground of appeal No. 3. Shri J.P. Shah, the assessee's authorised representative, filed before us details of the expenditure of Rs. 17,849 classified under various heads, namely, octroi, freight, cartage, miscellaneous expenses, licence fees, advertisement, postage, telephone and telegram and insurance premium. According to him, the Commissioner (Appeals) had not gone into all the different heads of expenditure and, therefore, had failed to apply the principles of Supreme Court's decision in CIT v. Lucas-T.V.S. Ltd. (No. 2) [1977] 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 5,700 was architectural service rendered for "Dipali Theatre". While the description against the second item of Rs. 14,200 was "Interior design services rendered for air-conditioning plant". Shri Shah contended that the whole of the amount be added to the cost of air-conditioning plant and development rebate allowed thereon. His submission was that architectural fees paid to architects were allocated towards air-conditioning plant as architectural fees were incurred for designing of the building with a view to effective functioning of air-conditioning plant. 6. On behalf of the revenue, it was pointed out that the amount of Rs. 5,700 could not at all be considered as relating to air-conditioning plant as the description was "archite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2(9) of the Finance Act, 1976, the relevant clause being sub-clause (c). An "Industrial company" for the purpose of this appeal will mean a company which is mainly engaged in the manufacture or processing of goods. Shri J.P. Shah rested his case only on the limb "processing of goods" in the case of the assessee's business of exhibition of films. 9. Shri Shah contended that film exhibition amounted to "processing of goods". He cited the meanings of the word "process" at page 1677 of the Shorter Oxford English Dictionary on Historical Principle, Vol. II. He pointed out to a meaning therein, namely, "to reproduce by mechanical or photographic process". It was his contention that applying this meaning, exhibition of a film will amount to proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ionary as the definition was provided in the Act itself and for this purpose reliance was placed on the observations of the Bombay High Court at page 381 in the decision reported in CIT v. N. U. C. (P.) Ltd. [1980] 126 ITR 377. 11. On a careful consideration of the rival submissions, we are unable to hold for the assessee that it is an "industrial company" within the meaning of section 2(9) of the Finance Act, 1976. Shri Shah has quoted one of the meanings given in the dictionary as under: "To treat by a special process ; e.g, to reproduce (a drawing, etc.) by a mechanical or photographic process 1884." Firstly, these meanings are not appropriate in the context of a taxation statute dealing with the definition of an "industrial company" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er two cases relate to cold storages. In the Calcutta High Court decision in CIT v. Radha Nagar Cold Storage (P.) Ltd., and the Allahabad High Court decision in Addl. CIT v. Farrukhabad Cold Storage (P.) Ltd., is followed. In Addl. CIT v. Farrukhabad Cold Storage (P.) Ltd., the Allahabad High Court considered an English decision at page 819. In that decision, the meaning of the word "process" were considered to be as under : "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." So far as the word "process" is concerned, i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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