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Judgment
The Revenue has made these applications suggesting the following question common to all these matters and requesting for a direction on the Tribunal to forward statement of case under s. 256(2) of the IT Act.
"Whether the Tribunal is right in law and on facts in directing the AO to treat the assessee-company as an industrial company when the assessee was engaged in the business of ginning and processing of cotton ?"
A similar question had arisen in respect of the same assessee in IT Ref. No. 10 of 1979. A Division Bench of this Court, by its judgment and order dt. 4th March, 1986, decided the question in the affirmative and against the Revenue following an earlier decision of this Court in Commissioner of Income Tax, Gujarat-I Vs. Lakhtar Cotton Press Co. (Pvt.) Ltd., . In that decision, it was held that, where looses cotton in bulk quantity with lighter density was, as a result of pressing, converted into cotton bales and to that extent it underwent a change, the assessee-company fell within the definition of an industrial company because it processed cotton into cotton bales and was entitled to the concessional rate of tax as provided under the law.
In view of this settled legal position which was applied in the case of the petitioner company itself there does not arise any question as suggested by the applicant for an opinion of this Court which, as noted above, is already given. All these applications are, therefore, rejected.