1981 (9) TMI 145

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..... e ITO held that the company was an industrial undertaking, as it was engaged in the processing of goods and that the rates applicable to it should be thus applicable to an industrial company. Thereafter, the CIT issued a notice to the assessee calling upon him to show cause why order u/s 263 should not be passed either setting aside the ITO's order u/s 143(3) r/w s. 144B of the Act as well as the subsequent order u/s 154 of the Act or modifying those orders so as to remedy what the CIT considered to be errors mentioned in the notice. According to the CIT, the errors were: (i) that the assessee-company was held to be at best engaged in processing of goods for the years in question. (ii) the ITO had applied the lesser rate of 55% to the to .....

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..... sidered. Therefore, the IAC's direction did not include the application of the said s. 104(4)(A) and consequently the ITO's order carrying out those directions also did not involve any application of that section. The ITO's order u/s 154 was, therefore, considered to be separate, free and independent of the IAC's direction. Therefore, the assessee's objection with regard to the exercise of the CIT's power u/s 263 of the Act on the order of the ITO u/s 154 is not tenable. 4. We have, therefore, now to consider the claim of the assessee for relief u/s 104(4)(a) of the Act. The nature of the assessee's activities have been indicated in the CIT's order mentioned above. Number of authorities in this connection have been cited in the bar and w .....

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..... doing processing. (iv) In Addl. CIT vs. A. Mukherjee Co. (P) Ltd. (1978) 113 ITR 718 (Cal) the assessee was publisher of books. It get the manuscript for publication, hit upon a suitable format, got it printed as per its requirement under its supervision get, the back bound after suitable changes and then put out the publication for sale. The court held that all these activities amounted to manufacturing or processing activity. This case concerns the interpretation of both the term manufacturing and processing considered almost synonymously by the Court. (v) In Addl. CIT vs. Farrukhabad Cold Storage (P) Ltd. (1976) 107 ITR 816 (All), the assessee was keeping potatoes in cold storage. The High Court held that the goods were subjected .....

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