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TMI Blog1985 (12) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee in the assets belonging to the firm. The WTO therefore, completed the assessment on the net wealth as returned save for a small addition in the value of jewellery. 2. The assessee appealed and before the AAC claimed exemption of the assessee's interest in the assets of the firm under the provisions of s. 5(1) (xxxiii) of the WT Act. The claim of the assesses was that the assessee was engaged in the business of distribution of power and was, therefore, an "industrial undertaking" within the meaning of the Explanation to s. 5 (1) (xxxi), which governed the meaning of the expression "industrial undertaking" in s. 5 (1) (xxxii) also., In support of the plea reliance was place on a decision of the Tribunal in the case of Smt. V. Saraswat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which reads as under, gives the following meaning to the term "industrial undertaking". "For the purpose of cl. (xxxa), this clause, cl. (xxxii), and cl. (xxxiv) the term "industrial undertaking" means an undertaking engaged in the business of generation or distribution of electricity or any other form power or in the construction of ships or in the manufacture or processing of goods or in mining." The ld. counsel stated that the aforesaid provisions were introduced by the Finance Bill of 1972 w.e.f. 1st April 1973 (1972) 83 ITR Statues 155. He invited attention to the relevant Notes on Clauses at page 165. He submitted that the word 'power' had not been defined in the WT Act and the Notes on Clauses also did not amplify the term any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gy, chemical energy, energy associated with light and sound and nuclear energy. He went on to state that energy stored in the chemical bonds of a substance was converted into another form when a chemical reaction occurred i.e., when a substance burnt chemical energy got converted into heat energy. His submission, therefore was that kerosene was comprised of latent chemical energy. which became patent chemical energy on ignition. He referred to Columbi Encyclopaedia page 1127, for stating that kerosene was a mixture of hydrocarbons and it is this mixture, which represented the latent chemical energy. Therefore, according to the ld. counsel, distribution of kerosene, in common parlance, could be classifieds distribution of power since energy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se concerns generating various forms of powers, of which instances had been given, were wellknown. He, therefore, submitted that distributing of kerosene would not come within the term "distribution of any other form of power". 6. We have considered the rival submissions. Both parties have placed before us considerable literature to support their respective stands on that would be the true concept of the term 'power'. In addition to the aforesaid literature, we would refer to an interesting writ up on concept of energy in the New Encyclopaedi Britannica 1984 Edition Volume 6, starting from page 859. It is stated that energy is usually and most simply defined as the equivalent of or capacity for doing work. Further on it is mentioned that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition advanced on behalf of the assessee. Explanation to s. 5(1) (xxxi) uses the expression "an undertaking engaged in the business of germination or distribution of electricity or any other form of power". This according to us, means that electricity or any other form of power contemplate in the Explanation should be capable of both generation and distribution ; though it will be sufficient for an assessee to be an industrial undertaking if it is either engaged in the business or generation or distribution of one or the other. The question, therefore, arises whether kerosene oil, which the assessee is supplying in the case before us, is capable of generation in the sense in which electricity can be generated. Th answer to this question, to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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