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Judgment
M. Katju, J.
This is an Income Tax reference u/s 256(1) of the Income Tax Act, in which the following question has been referred to us for our opinion :
"Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee was an industrial company engaged in the manufacture and processing of brass-ware articles and was entitled to the benefits claimed by it in the matter of taxation
The relevant assessment year is 1977-78".
The assessee is a private limited company enjoying income from manufacture and sale of brass-ware. In the course of assessment proceedings it contended that it was an industrial company and hence should be taxed at the rate of 55 per cent, which is the rate applicable to an industrial company. The assessee-company gets manufactured various articles of brass-ware from the artisans under its supervision and control. The question is whether it is an industrial company engaged in the manufacture and processing.
A Division Bench of this court in CIT v. Talwar & Khullar Ltd. 1998 UPTC 1113 (All) decided the question in favour of the assessee and against the department. Following tshe said decision, this reference is also answered in the affirmative, that is, in favour of the assessee and against the department.