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TMI Blog1987 (1) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... ying on business contractors. Each assessee pleaded that the said business came in the category of 'industrial undertaking' within the meaning of Explanation below clause (xxxi) of section 5(1) of the Wealth-tax Act, 1957 and as such exemption contemplated in section 5(1) (xxxii) should be granted. This plea was not accepted by the WTO but was accepted by the AAC in the appeal filed by the assessee. The department has now come in appeals before us and the common ground raised is that the learned AAC had erred in allowing exemption under section 5(1) (xxxii) in respect of the assessee's interest as partner in M. B. Gharpurey Engineers Contractors, a firm engaged in the business as contractors and builders of bridges and dams which is not a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings. In the process of construction of buildings, it manufactured window and door frames and concrete beams and slabs. The question was whether the assesssee-company was an industrial company within the meaning of section 2(7)(d) of the Finance Act, 1966. The definition of 'industrial company ' was as under: "(d) 'industrial company' means a company which is mainly engaged in the business 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 High Court held that the definition covers construction of ships and as such, there is implied omission of all other construction companies and hence the intention is to exclude a compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 'industrial company' the words are 'mainly engaged in the business of...' while in the definition of 'industrial undertaking' with which we are concerned the words are 'engaged in the business of...'. The word 'mainly' which is in the definition of industrial company is not there in the definition of industrial undertaking. Shri Patil for the assessee contended that decisions of the Bombay High Court would not be applicable because of this difference. We are unable to agree with Shri Patil on this submission. When the definition of industrial undertaking states that the undertaking should be engaged in the manufacture or processing of goods, what is meant is that the activity of manufacturing or processing of goods should be an independen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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