Law: Income Tax Act, 1922

Section:

Income-tax---Income-tax industrial company ---Concessional rate of tax---"Company which is mainly engaged in the manufacture or processing of goods"--- Company engaged in construction of buildings---That income attributable to activities of manufacturing or processing of goods is not less than 51 per cent. of total income---Burden is on assessee to adduce material to establish this requisite--¬Indian Finance (No. 2) Act, 1971, S.2(6)(c)---Indian Finance Act, 1972, S.2(6)(c). In order to be entitled to the lower rate of tax on an "industrial company", it is for the assessee-company to adduce material to establish that its income attributable to the activities of manufacture or production of goods is not less than 51 per cent. of the total income . Held, accordingly, that the appellant-company engaged in the construction of buildings was not an industrial company entitled to be taxed at the concessional rate because it had failed to adduce material to establish that the income attributable to the manufacturing activity undertaken by it represented not less than 51 per cent. of its total income. CIT v. Minocha Brothers P. Ltd. (1986) 160 ITR 134 affirmed on different grounds. ORDER B.P. JEEVEN REDDY, J.--The only question in this appeal preferred by the assessee against the judgment of the Delhi High Court (see (1986) 160 ITR 134) is whether the appellant is an "industrial company" within the meaning of the said expression as defined in the Finance Acts of 1971 and 1972. The definition reads as follows: " 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. Explanation. ---For the purposes of this clause, a company shall be deemed to be mainly engaged in the business of generation or distribution of electricity or any other form of power in the construction of ships or in the manufacture or processing of goods or in mining, if the income attributable to any one or more of the aforesaid activities included in its total income of the previous year (as computed before making any…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492